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The correct answer is option 2: I only.
Option I states that the engine of the Maruti 800 is unable to meet the stricter Bharat Stage IV norms that become mandatory in some major cities of India from 1st April 2010. This is correct, as the car manufacturer Maruti stopped selling the Maruti 800 in some major cities of India because its engine did not meet the new emission standards.
Option II states that the company has decided to promote another brand of car in the small car segment in some select cities. This statement is not mentioned in the question or in any other information provided.
Option III states that the company wants to shorten its product line. This statement is not mentioned in the question or in any other information provided.
Therefore, only option I is correct, stating that the engine of the Maruti 800 did not meet the new emission standards, leading to its discontinuation in some major cities of India.