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This is a tricky one because the question is not what he is or where he is but what James does when he needs money, therefore the answer should be that he picks pockets. BUT the proof proves that he is not in prison. I hate ambiguities in exams!
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the answer is Pick pocking(James) meaning James pic pockets when he needs money. Don't use resolution refutation hence use Money(James) to resolve the wffs. Remeber there are tewo statements: Pickpocket(James) and Pick pocking (James)