Directions: In the question, a statement is followed by two courses of action numbered I and II. Assume everything in the statement to be true, and decide which of the suggested courses of action logically follow(s) for pursuing the statement.

Statement: company X has rejected the first lot of valves supplied by company A and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship. Courses of action: (I) Company A needs to investigate the functioning of its purchase, production & quality control departments. (II) Company A should inspect all the valves rejected by Company X. (III) Company A should inform Company X that steps have been taken for improvement & renegotiate schedule of supply.