Step 1: Set up the variables.
Let the number of balls in Bags I, II, and III be \(I\), \(II\), and \(III\) respectively, each at least 1, with
\[ I + II + III = 10 \]
Step 2: Test statement (1) alone.
Statement (1) says \(I = III + 5\). Substituting into the total:
\[ (III+5) + II + III = 10 \implies II + 2\,III = 5 \]
With \(II \ge 1\) and \(III \ge 1\), try \(III = 1\): \(II = 3\), giving \((I,II,III) = (6,3,1)\), which fits. Try \(III = 2\): \(II = 1\), giving \((I,II,III) = (7,1,2)\), which also fits. Two different valid triples exist, so statement (1) alone does not pin down a unique answer.
Step 3: Test statement (2) alone.
Statement (2) says \(II = \frac{I}{2}\), so \(I\) must be even. Substituting:
\[ I + \frac{I}{2} + III = 10 \implies III = 10 - \frac{3I}{2} \]
Try \(I = 2\): \(II=1, III=7\). Try \(I=4\): \(II=2, III=4\). Try \(I=6\): \(II=3, III=1\). All three fit \(I,II,III \ge 1\), so again there are multiple valid triples, and statement (2) alone is not enough either.
Step 4: Use both statements together.
Now \(I = III + 5\) and \(II = \frac{I}{2}\). Substitute both into the total:
\[ I + \frac{I}{2} + (I - 5) = 10 \]
\[ \frac{5I}{2} = 15 \implies I = 6 \]
Then \(II = 3\) and \(III = 1\), a single valid triple with all bags having at least 1 ball.
Step 5: Conclusion.
Neither statement alone fixes a unique split of the balls, but combining both gives exactly one valid answer, \(I=6, II=3, III=1\).
\[ \boxed{\text{Both statements together are needed}} \]