help!!! one CR topic.

Graduate schools have begun to check whether applicants for admission are in default on government-guaranteed student loans. Any application submitted by an applicant who fails this test is not processed. Though all applications are tested, it is thought that the 3 percent of the applications that fail represent only three-quarters of the incoming application from individuals in default. Consequently, approximately 1 percent of the applications that are processed are those of applicants in default who remain undetected ,

Which of the following is an assumption in the argument above?

1>before being processed, the applications from individuals in default on their government-auaranteed student loans are not rejected for other reasons.

2). Applicants in default on their government-guaranteed student loans will not make any loan payments in the future.

3). Individuals in default on their government-guaranteed student loans apply to graduate school in the same numbers in which they do not apply to graduate schoool.

Hey, give me your input, I can't understand the topick, so headache now....
Thanks so much.