Not necessarily, we are given that 1st term is 0 and the 2nd term is 1, and based on statement 2, we are told that the 3rd term is 2. You are right that the first three terms do form an arithmetic sequence, but we cannot extrapolate that relationship to the 4th and 5th term. The fourth and fifth terms could be anything.

Abhi says

Isn’t the sequence in arithmetic progression based on the condition given in 2?

GMAT Quantum says

Hi Abhi,

Not necessarily, we are given that 1st term is 0 and the 2nd term is 1, and based on statement 2, we are told that the 3rd term is 2. You are right that the first three terms do form an arithmetic sequence, but we cannot extrapolate that relationship to the 4th and 5th term. The fourth and fifth terms could be anything.

Dabral