Comprehension Passage

Read the passage and answer the questions that follow:

The process of the imperialist conquest of Asia and Africa was accompanied by intense rivalries, and conflicts among the European imperialist powers. The competing claims over colonies often created conditions of war. However, generally, most of these conflicts were resolved in the conference rooms of Europe and wars were avoided. The European powers settled their rival claims which country would acquire which territory on the basis of quid pro quo or 'something for something', by giving away something in exchange for receiving something. For example, in 1904, after a long period of conflicting claims, which had brought them almost to the point of war, Britain and France entered into a secret agreement whereby Britain was given a free hand in Egypt and in exchange Morocco was to be given to France. When Germany came to know about it, she demanded that France relinquish her claim to Morocco. A series of international crises followed, bringing Europe to the brink of war. The Moroccan issue was finally settled in 1911 when France agreed to give a portion of French Congo to Germany and Germany informed France that she could do what she liked in Morocco, In creating these crises and in resolving them, and people of French Congo or Morocco, whose territories were being bargained, had no say.

Given below are two statements:

Statement I: Competing claims over African colonies were generally settled through war among the European powers.

Statement II: France was in conflict only with Britain over Morocco.

In light of the above statements, choose the most appropriate answer from the options given below: 

1
Both Statement I and Statement II are correct. 
2
Both Statement I and Statement II are incorrect.
3
Statement I is correct but Statement II is incorrect.
4
Statement I is incorrect but Statement II is correct.

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