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Consider a control unit generating the control signals. These control signals are divided into five mutually exclusive groups as shown below:

$\begin{array}{|l|l||l|l|} \hline  \text{Groups} &  G1 &   \text{$G1$}  & G1 &  G1 & G1  \\\hline \text{Control Signals} & 3 & 7 & 10 & 12 & 2 \\ \hline \end{array}$

How many bits are saved using the Vertical Micro-programmed instead of Horizontal Micro-programmed control unit?

  1. $14$
  2. $34$
  3. $20$
  4. None
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In VERTICAL MICRO-PROGRAMMING , control signals are stored in encoded form. .

now in the Question given there are 5 groups which contains mutually exclusive signals, i.e, they can be activated one at a time for a given group.

group 1=⌈log3⌉=2 (Number of input bits for decoder, given output
is number of control signals in given group)

group 2=⌈log7⌉=3

group 3=⌈log10⌉=4

group 4=⌈log12⌉=4

group 5=⌈log2⌉=1

Total bits required in vertical micro-programming =2+3+4+4+1=14

while in HORIZONTAL MICRO-PROGRAMMING ,we need 1 bit for every control signals 

so, total bits required in Horizontal Micro-programming =3+7+10+12+2=34 bits

therefore, total bits saved = 34-14 =20 bits

Hence, C is answer :)

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