25% of the imperfect items are rejected. 25% of overall items are rejected makes no sense since it clearly states that perfect items are never rejected and you would necessarily reject some perfect items otherwise. $P(R|I)=0.25$
Remember that $P(A\cap B)\leq P(A)$
$0.25=P(I\cap R)\leq P(I)=0.12$ yields a contradiction.