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The correct answer is option 4 - only statement III is correct.
Statement I is incorrect as the climate in Andaman and Nicobar Islands is tropical monsoon climate, not equatorial climate. Equatorial climate is characterized by high temperatures and rainfall throughout the year, while tropical monsoon climate has distinct wet and dry seasons.
Statement II is incorrect as there are no active volcanoes in Andaman and Nicobar Islands. The only active volcano in India is located in the Andaman Sea, not specifically in the Andaman and Nicobar Islands.
Statement III is correct. Andaman and Nicobar Islands are known for their rich biodiversity, including coral reefs. The islands are home to one of the most extensive coral reef systems in the world, making it a popular destination for scuba diving and snorkeling.
Therefore, only statement III is correct, and the correct answer is option 4.