Consider the following statements regarding the NITI Aayog Fiscal Health Index (FHI) 2025:

Statement I: Odisha ranked first in the index. 

Statement II: This is due to its low fiscal deficit, strong debt management, and effective capital expenditure strategies.

Statement III: States like Kerala and Punjab ranked as the top performers in fiscal prudence and revenue mobilization. 

Which of the following is correct in respect of the above statements?

1
Both Statement II and Statement III are correct and both explain Statement I
2
Both Statement II and Statement III are correct, but only one of them explains Statement I
3
Only one of the Statements II and III is correct and that explains Statement I
4
Neither Statement II nor Statement III is correct

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