The correct answer is: D. Neither I nor II is strong.
Argument I is not strong because it does not provide any evidence to support its claim that the private sector entities are not equipped to handle such projects. It is possible that the private sector is capable of handling these projects, but the argument does not provide any evidence to support this claim.
Argument II is not strong because it is based on the assumption that what is done in developed countries is necessarily good for India. This is a questionable assumption, as there are many differences between India and developed countries. It is possible that the private sector is not the best way to handle infrastructural development projects in India, even though it is the best way in developed countries.
In conclusion, neither argument I nor II is strong.