The word that has same meaning as the italicized word in both the sentences is Option E, 'Appropriate'. Appropriate means suitable or proper. It also means to take something for one's own use, without owner's permission. Sentence I means that officer managed to take a large amount of money for himself from the public funds. Sentence II means that the remarks he made were not proper in presence of the members of the Board. Option A, 'defalcate' means the illegal use of money by someone who was responsible for it. Option B, 'opine' means to suggest or propose. Option C, 'Proper' means genuine. Option D, 'divest' means deprive. Thus, options A, B, C and D are incorrect and the correct word is option E, appropriate.