The following items consist of two statements, Statement I and Statement II Examine these two statements carefully and select the correct answer using the code given below:

Statement I: Dadabhai Naoriji argued that what was being drained out was 'potential surplus' that could generate more economic development in Indian if invested in India

Statement II: Imperialists believed that India was brought into the large capitalist world market and that was in itself progress towards modernization 

1

Both the statements are individually true and Statement II is the correct explanation of Statement I

2

Both the statement are individually true but Statement II is NOT the correct explanation of Statement I

3

Statement I is true but Statement II is false 

4

Statement I is false but Statement II is true

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