The correct answer is: Both I and II follow.
The statement says that a large number of engineering graduates in the country are not in a position to have gainful employment at present and the number of such engineers is likely to grow in the future. This could be due to a number of reasons, such as a mismatch between the skills of the graduates and the requirements of the employers, or a lack of opportunities in the job market.
Course of action I suggests that the government should launch attractive employment generation schemes and encourage these graduates to opt for such schemes to use their expertise and knowledge effectively. This is a good suggestion, as it would help to provide employment to these graduates and make use of their skills.
Course of action II suggests that the proliferation of engineering colleges in the country has lowered the quality of the engineering graduates, and that those colleges which are not equipped to impart quality education should be closed down. This is also a good suggestion, as it would help to improve the quality of engineering education in the country and produce graduates who are more employable.
Therefore, both course of action I and II follow from the statement.