The correct answer is: Only argument I is strong.
Argument I is strong because it is based on the principle of equity. It argues that foreign investment should be distributed evenly across all states, so that all states can benefit from the economic growth that it brings. This is a fair and just principle, and it is one that is consistent with the goal of overall development of the country.
Argument II is weak because it is based on the assumption that a large number of states lack infrastructure to attract foreign investment. However, this assumption is not necessarily true. There are many states in India that have the necessary infrastructure to attract foreign investment, and it is possible to develop the infrastructure in other states. Therefore, argument II is not a strong argument for the concentration of foreign investment in only a few states.
In conclusion, only argument I is strong. Argument II is weak because it is based on an assumption that is not necessarily true.