The correct answer is: Only I follows.
The statement says that Orissa and Andhra Pradesh have agreed in principle to set up a joint control board for better control, management and productivity of several inter-state multipurpose projects. This does not mean that other neighbouring states should set up such control boards. It is possible that the joint control board will be effective in Orissa and Andhra Pradesh, but not in other states. It is also possible that the joint control board will not be effective in either Orissa or Andhra Pradesh.
The statement also does not mean that the proposed control board should not be allowed to function. It is possible that the joint control board will be effective in Orissa and Andhra Pradesh, and that it will be beneficial to both states.
Therefore, only course of action I follows.