The correct answer is: Neither I nor II follows.
The statement “The best evidence of India’s glorious past is the growing popularity of Ayurvedic medicines in the West” does not logically imply that Ayurvedic medicines are not popular in India or that Allopathic medicines are more popular in India.
It is possible that Ayurvedic medicines are both popular in India and in the West. It is also possible that Ayurvedic medicines are not popular in India but are popular in the West. Additionally, it is possible that Ayurvedic medicines are neither popular in India nor in the West.
The statement does not provide enough information to determine whether or not either of the conclusions is true.