I really don't like this argument. I do like Faraday's concept of lines generally, but people take them too literally. They don't really exist. There aren't seven of them attached to this magnet, nor any other number of them. (*)You could draw a unique line through any point in space and for any two points in space, you could find a point, say, midway between them to get another line. Or you could not bother to draw any lines! The field would still be there.
Now in your diagram you get your effect, IMO, by being selective in which lines you choose to draw. Put another line outside your largest magnetic loop and that field links with the current ring in the correct manner. All your field lines do not link with the larger circuit and so do not induce any emf.
If you consider just that one magnetic line of force (the largest closed line you show) as being in a thin iron core of a transformer. (Grey)
The primary coil of the transformer wound round it in the position of the permanent magnet. (Red)
Two secondary coils positioned wher you show the two current loops. (Red)
View attachment 240014
In which coil do you think an emf (and, since it's a conducting loop, a current) would be induced?
a) Both secondaries, in opposite directions
b) Both secondaries, in the same direction
c) In the smaller secondary coil, but not the larger
d) In the larger secondary coil, but not the smaller
e) In neither
f) (and just for good measure) None of the above
Then the same question if we used a larger "line" of magnetism as the core instead. (Blue)
View attachment 240015
If we used both cores, would the induced emfs be in the same direction or in opposite directions? (Or any of the other combinations.)
I think it's all irrelevant owing to hutchphd's light mobile carriers and heavy fixed carriers of opposite polarity, but I just don't like Faraday's lovely litlle lines being taken advantage of when he's not here to defend them.
(*) Edit: I've just realized I've said this in a way that isn't true. I intended to imply that there are an unlimited number of lines to draw, but was careless in my description. If anyone wants to argue, I'll come back with a more careful wording, but I hope most will accept it without.