Let X and Y be two events given by
X : A fails in an examination
Y : B fails in an examination
P(A fails) = P(X) = 0.2
P(B fails) = P(Y) = 0.3
Now, P(either A or B fails) = P(X ∪ Y)
We know that,
P(X ∪ Y) ≤ P(X) + P(Y) = 0.2 + 0.3 = 0.5
⇒ P(X ∪ Y) ≤ 0.5
∴ P(either A or B fails) ≤ 0.5
Hence, the correct answer is option (c).