The correct answer is: C. Either I or II follows.
The statement says that a child was caught exploding crackers secretly in the school, in spite of the Principal’s repeated warnings. This suggests that the child is aware that his actions are wrong, but he continues to do them anyway.
Course of action I suggests that all the crackers should be taken away from the child and he should be threatened not to do it again. This is a reasonable course of action, as it would remove the child’s access to the crackers and deter him from doing it again.
Course of action II suggests that the child should be severely punished for his wrong act. This is a more severe course of action, and it is not clear whether it is necessary. The child may have already learned his lesson from being caught, and further punishment may not be necessary.
Therefore, either course of action I or course of action II could be taken, depending on the circumstances.