Concept:
Stars form inside huge clouds of gas and dust called nebulae. The question tests the basic stages of star formation.
Step 1:
Within a nebula, the gas is not spread evenly; it gathers into denser, localised lumps or clumps of gas. So Statement-I is correct.
Step 2:
Inside each lump, gravity pulls the gas inward, causing it to collapse and form a dense, hot central core of the gas cloud, which eventually becomes a star. So Statement-II is also correct.
Answer: Option (3) — Both statement-I and statement-II are correct.