Step 1: Analyze assumption 1:
This is not necessarily true. The rule doesn’t imply that students can't be identified without ID — just that it's a rule to carry it.
Step 2: Analyze assumption 2:
Yes, asking students to carry ID cards logically assumes that they are needed for regulation and security. So, only assumption 2 is valid.

Three friends, P, Q, and R, are solving a puzzle with statements:
(i) If P is a knight, Q is a knave.
(ii) If Q is a knight, R is a spy.
(iii) If R is a knight, P is a knave. Knights always tell the truth, knaves always lie, and spies sometimes tell the truth. If each friend is either a knight, knave, or spy, who is the knight?