Final answer:
The statement is true as the car exuding oil indicates that there is a leak or problem with the vehicle, suggesting that the observation is correct.
Step-by-step explanation:
The statement "I knew the car had a problem by the way it was exuding oil," if factual, is true. The word 'exude' means to release or discharge (a liquid or smell) slowly and steadily, or to exhibit in abundance. In this context, when a car is exuding oil, it indicates that there is a leak or some other issue causing the oil to seep out, which is a sign of a problem with the vehicle. Therefore, recognizing that the car had a problem because it was exuding oil is a logical conclusion.