Statement I:
Photochemical (oxidising) smog is formed from the primary pollutants
\[
NO_x
\]
and
\[
\text{hydrocarbons (VOCs)}.
\]
The compounds
\[
O_3
\]
and
\[
PAN
\]
are formed during the reaction process and are therefore
secondary pollutants, not primary precursors.
\[
\boxed{\text{Statement I is incorrect}}
\]
Statement II:
Photochemical smog forms due to sunlight-driven reactions involving nitrogen oxides and hydrocarbons.
Hence it is commonly observed in
\[
\text{warm, dry and sunny climates}.
\]
\[
\boxed{\text{Statement II is correct}}
\]
Statement III:
Catalytic converters reduce emissions of
\[
NO_x,
\]
carbon monoxide and hydrocarbons from automobiles.
Since these pollutants are responsible for photochemical smog formation, catalytic converters help control it.
\[
\boxed{\text{Statement III is correct}}
\]
Final Result:
Only statements II and III are correct.
\[
\boxed{\text{II, III only}}
\]
\[
\boxed{\text{Answer = (A)}}
\]