Explanation
$$\textbf{Step -1: Finding the sum of first 10 observations.}$$
$$\text{Average of first 10 observations}=4.5$$
$$\mathbf{\because\text{Average}=\dfrac{\text{Sum of observations}}{\text{Number of observations}}.}$$
$$\therefore4.5=\dfrac{\text{Sum of first 10 observations}}{10}$$
$$\Rightarrow\text{Sum of first 10 observations}=4.5\times10=45$$
$$\textbf{Step -2: Finding the sum of remaining 30 observations.}$$
$$\text{Average of remaining 30 observations}=3.5$$
$$\therefore3.5=\dfrac{\text{Sum of remaining 30 observations}}{30}$$
$$\Rightarrow\text{Sum of remaining 30 observations}=3.5\times30=105$$
$$\textbf{Step -3: Finding the average of the whole group.}$$
$$\text{Sum of total 40 students}=45+105=150$$
$$\text{Number of total observations}=40$$
$$\text{Average of the whole group}=\dfrac{150}{40}$$
$$=\dfrac{15}{4}$$
$$\textbf{ Hence, option B is correct.}$$
$$\textbf{ Hence, option A is correct.}$$
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