The Solution:
Let the two numbers be x and y.
The sum of the two numbers is 45.

Their difference is 17.

Solving the eqn(1) and eqn(2) by adding both equations together, we get

Dividing both sides by 2, we get

Substituting 31 for x in eqn(1), we get

Therefore, the correct answer is:
Larger number = 31
Smaller number = 14