Option 1: Both the statements are individually true and statement II is the correct explanation of statement I.

This option is incorrect because it states that statement II is the correct explanation of statement I. However, statement I does not provide any information or context that would require an explanation. Therefore, statement II cannot be considered as the correct explanation of statement I.

Option 2: Both the statements are individually true but statement II is not the correct explanation of statement I.

This option is correct. It acknowledges that both statement I and statement II are true. Statement I suggests that Gandhi failed to realize that the Khilafat issue was extra-territorial, meaning it was related to a territory outside of India. Statement II provides additional information about the Khilafat cause being discredited by 1923 due to the establishment of a secular republican government in Turkey by Mustafa Kemal Pasha. However, statement II does not directly explain or justify why Gandhi failed to realize the extra-territorial nature of the issue. Therefore, statement II is not the correct explanation of statement I.

Option 3: Statement I is true but statement II is false.

This option is incorrect as it contradicts the premise that both statements are true.

Option 4: Statement I is false