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

Statement I states that under the Gandhian strategy of Satyagraha, there is a cycle of struggle and truce. During the struggle phase, there is vigorous extra-legal mass movement and confrontation with colonial authority. And during the truce phase, direct confrontation is withdrawn. This statement is correct because this cycle of struggle and truce is a characteristic feature of Gandhi`s approach to nonviolent resistance.

Statement II states that the entire political process of struggle-truce-struggle is upward spiraling, and it assumes that the freedom struggle would pass through several stages until power is transferred by the colonial regime itself. This statement is also correct because Gandhi believed that through this cycle of struggle and truce, the movement would gain momentum and strength until the colonial regime would eventually be forced to transfer power to the Indian people.

Therefore, both statements I and II are correct in describing the Gandhian strategy of Satyagraha.