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The correct answer is 2, indicating that statements II and III about Madam Bhikaji Cama are true, while statement I is not.
Here`s the explanation for the statements:
I. Madam Cama did unfurl a flag at the International Socialist Conference, however, it was in Stuttgart, Germany in 1907, not Paris. This is why this statement is incorrect.
II. Madam Bhikaji Cama did indeed serve as a private secretary to Dadabhai Naoroji, a prominent leader of the Indian National Congress and an advocate for Indian independence. Hence, this statement is accurate.
III. Madam Cama was born into a well-off Parsi family in Bombay (now Mumbai), thus confirming the correctness of this statement.
So, the combination of the correct statements II and III is provided in option 2.