The correct answer is E. Both I and II follow.
The statement says that there is a substantial increase in the number of accidents causing deaths and severe injuries due to malfunctioning of the traffic signals. This means that the traffic signals are not working properly and are causing accidents.
Course of action I says that the traffic police should immediately post traffic personnel at the junctions. This is a good course of action because it will help to reduce the number of accidents. Traffic personnel can direct traffic and help to prevent accidents.
Course of action II says that the signal system should immediately be repaired or replaced. This is also a good course of action because it will fix the problem with the traffic signals. If the traffic signals are working properly, then there will be fewer accidents.
Therefore, both course of action I and course of action II follow from the statement.