1. The problem asks which statement is true based on the diagram of parallelograms, rhombuses, squares, and rectangles. 2. From the description, squares are inside both rhombuses and rectangles, meaning all squares are both rhombuses and rectangles. 3. Statement A: "All rhombuses are squares." This is false because the rhombuses oval contains more than just squares. 4. Statement B: "All squares are rectangles." Since squares are inside the rectangles oval, this is true. 5. Statement C: "All rectangles are squares." This is false because rectangles include more than just squares. 6. Statement D: "All parallelograms are rectangles." This is false because parallelograms include shapes outside rectangles. 7. Therefore, the correct statement is B: All squares are rectangles.