premise: A city square with a large red wall and people walking about.
hypothesis: Some people have dogs.
explanation_1: It's not even a complete sentence because it lacks a predicate, but there's no mention of anything aside from people. I guess from experience with a city someone could potentially assume that some people have dogs but not from the first statement itself.
premise_logic: exists e1 s1 s2 s3 x1 x2 x3 x4 x5 x6.(a_topic(x1) & with(x1,x3) & a_about(s3) & Manner(e1,s3) & Actor(e1,x6) & v_walk(e1) & (x3 = x6) & subset_of(x5,x3) & n_people(x5) & subset_of(x4,x3) & n_wall(x4) & a_red(s2) & Theme(s2,x4) & a_large(s1) & Theme(s1,x4) & n_square(x1) & of(x1,x2) & n_city(x2))
hypothesis_logic: exists e1 x1 x2.(Theme(e1,x2) & Actor(e1,x1) & v_have(e1) & n_dog(x2) & n_people(x1))
premise_sim: exists e1 s1 s2 s3 x1 x2 x3 x4 x5 x6.(with(x1,x3) & v_walk(e1) & subset_of(x5,x3) & subset_of(x4,x3) & of(x1,x2) & n_wall(x4) & n_square(x1) & n_people(x5) & n_city(x2) & a_topic(x1) & a_red(s2) & a_large(s1) & a_about(s3) & Theme(s2,x4) & Theme(s1,x4) & Manner(e1,s3) & Actor(e1,x6) & (x3 = x6))
hypothesis_sim: exists e1 x1 x2.(v_have(e1) & n_people(x1) & n_dog(x2) & Theme(e1,x2) & Actor(e1,x1))