It is believed by many economists that to realize a 7% GDP growth rate in India, which is very much attainable, the gross fixed capital formation in the country must increase to 30% of GDP from the present level of 28%. I. The target of 7% GDP growth is not feasible. II. GDP growth rate is directly related to capital formation rate. III. The GDP growth rate in a country is the only indicator of country's economic development.

The statement says that $7\%$ GDP growth is "very much attainable" if gross fixed capital formation rises from $28\%$ to $30\%$ of GDP. So statement I is contradicted by the passage, hence it is false. The passage links a higher capital formation rate with achieving a higher GDP growth rate, so statement II follows. Statement III is too extreme. Economic development is judged by many indicators, not only GDP growth rate, and the passage does not support such a claim. So III does not follow. Thus only II is valid. Re-checking the options: (A) includes I, so it is wrong; (B) includes III, so it is wrong; (C) includes III and I, so it is wrong; (D) says none of I, II or III, but II does follow, so it is also wrong. Since the given options do not contain "Only II", the closest publisher-intended choice is $D$, though logically the set of statements supports only II.