The correct answer is option 3: Both I and II.

Statement I states that in a cyclone, the direction of wind flow is counter-clockwise in the northern hemisphere. This statement is correct. In the northern hemisphere, cyclones have a low-pressure center, and the air flows inward toward the center. Due to the Coriolis effect, the wind gets deflected to the right, resulting in a counter-clockwise rotation.

Statement II states that tropical cyclones fade away when they reach land because there is no large supply of warm moist air. This statement is also correct. Tropical cyclones derive their energy from warm ocean waters, and when they move over land, they lose their source of warm, moist air. Without this source of energy, the cyclone weakens and eventually dissipates.

Therefore, both statements are correct. In a cyclone, the wind flows counter-clockwise in the northern hemisphere, and tropical cyclones fade away when they reach land due to the lack of warm moist air.