Step 1: Read the two blanks as two separate mini questions.
The passage has two blanks in two different sentences, joined by one shared idea: honesty versus false claims. Solve each blank on its own first, then check that the same option works for both.
Step 2: Solve the first blank.
The sentence right after the first blank says "False claims are not going to help." This tells us the manager is accusing the person of doing something dishonest with numbers. The verb in the first blank must mean "overstating" or "inflating." Among the four options, only "exaggerates" (option A) actually means overstating a fact. "Excels" and "diminishes" both point the wrong way: excelling is a positive unrelated action, and diminishing means understating, which does not match "false claims." "Aggravates" means worsening a situation, not inflating a number.
Step 3: Solve the second blank.
The second sentence is a general statement: "Honesty _____ trust." This is a cause and effect sentence: honesty is the cause, and something happens to trust. Everyday usage tells us honesty builds or creates trust, so we need a word meaning "creates" or "produces." "Engenders" fits exactly. "Encourages" is close but weaker in meaning here. "Alleviates" (to ease something painful) and "eliminates" (to remove) both give the wrong meaning, since trust is not a problem to be eased or removed.
Step 4: Combine the two answers.
The only option where the first word is "exaggerates" and the second word is "engenders" is option (A). Checking it against the full passage: "He often exaggerates the numbers. False claims are not going to help. Honesty engenders trust." This reads as one consistent statement about dishonest reporting versus the trust that honesty builds.
Final Answer:
The correct order of words is exaggerates; engenders, option (A).