The correct answer is: D. Neither I nor II is strong.
Argument I is not strong because it is based on the assumption that all luxury hotels are places from where international criminals operate. This is an overgeneralization, and there is no evidence to support it. In fact, it is likely that the vast majority of luxury hotels are not involved in criminal activity.
Argument II is not strong because it is based on the assumption that affluent foreign tourists will not stay in India if luxury hotels are banned. This is also an overgeneralization, and there is no evidence to support it. In fact, it is likely that some affluent foreign tourists would still choose to stay in India even if luxury hotels were banned.
In conclusion, neither argument I nor argument II is strong.