When a magnet falls down a tube, eddy currents form and flow around the tube, perpendicular to the direction in which the magnet falls.

[![enter image description here](https://i.stack.imgur.com/AgrG9.jpg)](https://i.stack.imgur.com/AgrG9.jpg)

However, when there is a vertical *slit* in the tube, are either **no eddy currents** formed (since they cannot complete a rotation), or alternatively do much smaller eddy currents form, as suggested by the following figure?

[![enter image description here](https://i.stack.imgur.com/4H3qD.jpg)](https://i.stack.imgur.com/4H3qD.jpg)

Further to this, a recent HSC (Australian Physics Examination) tested this,
[![enter image description here](https://i.stack.imgur.com/ldb8W.jpg)](https://i.stack.imgur.com/ldb8W.jpg)

The official answer to this question C. If it is true that small eddy currents are formed, why then is this the case?