The correct answer is: Only conclusion II follows.
The statement only tells us that the percentage of the national income shared by the top 10 per cent of households in India is 35. It does not tell us anything about the rate of economic growth in India. Therefore, we cannot conclude that when an economy grows fast, concentration of wealth in certain pockets of population takes place.
However, the statement does tell us that the national income is unevenly distributed in India. This is because the top 10 per cent of households in India are sharing 35 per cent of the national income, while the remaining 90 per cent of households are sharing the remaining 65 per cent of the national income. This suggests that there is a large gap between the rich and the poor in India.
Therefore, only conclusion II follows.