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Option 1 : Neither I nor II follows

Statement: Farmers are unable to sell their produce due to low demand.

As statement says Farmers are unable to sell their products due to low demand.

Course of action:

I: The government should buy products from farmers at a price below the cost price and export them at a higher price.

If the government buys their product below the cost price this will not help them to recover their loss, hence this is not the right statement to help the farmers.

Hence, the course of action I do not follows.

II: Government should not interfere in this situation as it will cause trouble to the farmers.

Government should interfere in this situation otherwise how farmers sell their product on a large scale. Hence, this is also not the right statement to help farmers.

Hence, the course of action II do not follows.

Hence, Option (1) is correct.

Some rules to solve Statements and Course of action questions must be kept in mind while solving it.

Rule 1. Have an unbiased and neutral mind frame. Individual perception must not be used to judge the course of action to be taken.

Rule 2. The first step should be to identify the root cause of the problem. Once the problem is solved, a logical mindset should be employed to figure out the course of action.

Rule 3. There must be no extremity involved in the course of action.

Rule 4. A course of action must be able to solve, reduce, or minimize the problem given in the situation.

Rule 5. The course of action can be said to solve/reduce the problem when it is an established fact, when it is logically possible and when it is known from experience. 

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