Option 1: This option states that both Statement I and Statement II are true, and Statement II is the correct explanation of Statement I. This means that the fact that India receives the highest share of FDI inflow from Mauritius is true, and the reason for this is the existence of a Double Taxation Avoidance agreement between India and Mauritius. However, it is important to note that this option is incorrect.

Option 2: This option states that both Statement I and Statement II are true, but Statement II is not the correct explanation of Statement I. This means that India does receive the highest share of FDI inflow from Mauritius, and there is indeed a Double Taxation Avoidance agreement between India and Mauritius. However, the existence of the agreement does not necessarily explain why India receives the highest share of FDI inflow from Mauritius. This option is correct.

Option 3: This option states that Statement I is true, but Statement II is false. However, this option is not correct. Both Statement I and Statement II are true.

Option 4: This option states that Statement I is false, but Statement II is true. This option is not correct, as Statement I is true. India does receive the highest share of FDI