[Solution by Dr. Abubacker] Vernier constant $=\frac{1\ \mathrm{MSD}}{\text{number of VSDs}}$, a division and not a product, so Statement II is false. A vernier division can also be larger than a main scale division (e.g. 10 VSD = 11 MSD), so 'always smaller' in Statement I is false. Answer (3).