Option(1) is the correct answer because both the statements I and II are correct. Each restriction endonuclease recognises a specific palindromic nucleotide sequences in the DNA. It will bind to the DNA and cut each of the two strands of double helix at specific points. Restriction enzymes cut the strand of DNA a little away from the centre of the palindrome site; but between the same two bases on the opposite strands. So both the statements I and II are correct.