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The correct answer is option 2 - I, II and III.
Let`s dissect each option for a better understanding:
Option 1: "I and II" means that only if the nomination made by the candidate is found to be invalid or if the candidate withdraws their nomination (even if it is found valid), the security deposit will be returned. However, this option doesn`t consider the third condition mentioned in the question, which is also necessary for the return of the security deposit.
Option 2: "I, II and III" considers all the conditions mentioned in the question. If any of the following conditions are met, the security deposit is returned:
- The nomination made by the candidate is found to be invalid.
- The candidate has withdrawn their nomination, even if it is found valid.
- The candidate lost the polls but secured 1/6th of the total number of valid votes polled in that election.
Option 3: "II and III" doesn`t consider the first condition mentioned in the question, which states that the nomination made by the candidate needs to be found invalid.
Option 4: "I only" only considers the first condition mentioned in the question, which is not sufficient for the return of the security deposit.
Therefore, option