Option (1) is the correct answer because both the statements I and II are correct as fatty acids and glycerol being insoluble in water, cannot be absorbed into the blood. They are first incorporated into small droplets called micelles which move into the intestinal mucosa. They are re-formed into very small protein coated fat globules called chylomicrons which are transported into the lymph vessels (lacteals)in the villi. These lymph vessels ultimately release the absorbed substances into the blood stream.