The correct answer is: Only I and III follow.
The statement says that the number of dropouts from municipal schools has significantly increased after the withdrawal of the midday meal scheme. This suggests that the midday meal scheme was a major factor in keeping children in school. Therefore, the government should reconsider its decision to withdraw the scheme.
However, the statement does not provide any information about the reasons for the dropouts. It is possible that there are other factors, such as poor teaching, lack of discipline, or violence in schools, that are also contributing to the problem. Therefore, the government should also carry out a detailed study to find out the reasons for the dropouts.
The other two courses of action, closing down some of the municipal schools and doing nothing, are not supported by the statement.