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due to contiguous allocation we always suffer from  external fragmentation // is it right to use word always here   ,

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Contagious memory allocation results into internal fragmentation. Why ? Simple because, maximum size of process is limited by the size of partition if Virtual Memory concept is not used.

Suppose, partition size is slightly bigger then the process size, then it will leave some free space. This free space is such that it is too small to allocate a new process here. Now multiple free space can combine to form a bigger free space. This bigger free space can accommodate a process but it is not possible because the free spaces are not contagious. Hence, External fragmentation.

So as joshi_nitish said, it is right to say that "when total space is sufficient to satisfy process size but that space is not contagious" then external fragmentation can result.

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