Option 1: Both the statements are individually true and Statement II is 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.

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

Option 4: Statement I is false, but Statement II is true.

The correct answer is option 2: Both the statements are individually true, but Statement II is not the correct explanation of Statement I.

Explanation:

Statement I is true as indigo did indeed form the basis of a flourishing sector of commercial agriculture by the beginning of the 19th century. Indigo was a cash crop that was extensively cultivated and exported for its blue dye.

Statement II is also true as the Indigo Commission was indeed set up in 1860 to inquire into the grievances of the indigo cultivators. The commission was formed after a series of protests and uprisings by indigo cultivators against the oppressive practices and contracts imposed by indigo planters.

However, Statement II is not the correct explanation of Statement I. The formation of the Indigo Commission was a response to the problems faced by indigo cultivators, but it does not directly explain the flourishing of indigo as a