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

Statement I states that in the month of July, the Inter Tropical Convergence Zone (ITCZ) is located in the Indo Gangetic plain. The ITCZ is a belt of low pressure that encircles the Earth near the equator and it moves northward during the summer months. In July, the ITCZ does indeed move northward and can be found over the Indo Gangetic plain, resulting in increased rainfall in that region.

Statement II states that the Northern Inter-Tropical Convergence Zone is the zone of clouds and heavy rainfall. This is also true. The ITCZ is a region where the trade winds from the northern and southern hemispheres converge. This convergence of winds leads to the formation of clouds and heavy rainfall.

Therefore, both statements are correct and option 3 is the correct answer.