Eddy Currents – Tubes with slits

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

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?

Further to this, a recent HSC (Australian Physics Examination) tested this,

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