Explanation:

Sentence I. In spite of the presence of government hospitals in great numbers, the patients are not being served adequately.
The original sentence nowhere specifies the scarcity or abundance of government hospitals. Inclusion of the phrase ‘in great numbers’ makes the sentence a weak choice. Option A gets eliminated.
Sentence III. Although government hospitals are trying their best to serve the poor patients yet the services provided by them are not inadequate in any manner.
Inclusion of the word ‘poor’ in the sentence makes this a weak choice as the original sentence doesn’t talk about the financial status of its patients anywhere.
Sentence IV. With an increasing population in the area, the government hospitals now find it difficult to serve their patients with quality treatment.
This sentence can also be eliminated as the original sentence nowhere mentions ‘increasing population’ a matter of concern.
Sentence V. Government hospitals in general lack resources and thus become unable to serve its patients with quality treatment.
Inclusion of the phrase ‘in general’ makes the sentence absurd as the original sentence talks of only ‘many’ government hospitals and not ‘all’ of them.
Sentence II. Even though there are many government hospitals which are providing health services to the populace of the region, the services rendered are inadequate in terms of quantity and quality.
The sentence above conveys the same meaning as the original sentence does and is hence the correct choice.
Evidently, option B is the correct answer.