Statement I is incorrect because individual differences do not refer only to physical characteristics. They also include psychological dimensions such as intelligence, personality, emotions, and behaviour patterns. Statement II is correct because psychology defines individual differences as the distinctiveness and variations among people's characteristics and behaviour patterns. Therefore, only Statement II is correct.

Heredity is reflected in studies showing high IQ correlation among identical twins. Environment influences intelligence through enriched schooling and exposure. Complex interaction means genetic limits interact with environmental opportunities. Socio-cultural influence shapes cognitive styles through traditions and cultural practices. Thus: 1 → iii 2 → i 3 → ii 4 → iv

Psychological differences involve personality dimensions such as introversion and extroversion. "Outgoing" is commonly contrasted with "withdrawn," making Option C the correct psychological opposite.

Hair colour is the most specific bodily feature. Specific creative potential is a narrower psychological ability. General cognitive competence or intelligence represents a broader and more global psychological capacity affecting multiple areas of functioning. Thus, the correct sequence is: II → III → I

Dominance and submissiveness are behavioural characteristics associated with personality. Formal personality assessment helps predict how an individual is likely to behave in team settings and interpersonal situations.

Psychologists generally believe that behaviour patterns are influenced by personality traits. Traits such as dominance, sociability, or emotional stability affect how people respond in different situations. Therefore, the statement claiming behaviour is entirely unaffected by personal traits is incorrect.

The situationist perspective explains that behaviour is strongly influenced by the situations and circumstances in which an individual is placed. External environmental conditions may alter behaviour even when personality traits remain stable.

An individual initially possesses an aggressive personality trait. Later, the person encounters an intimidating authority figure such as a top boss. Due to situational pressure, the individual behaves submissively. This sequence demonstrates how situations can influence behaviour. Thus: II → I → III

Statement I is correct because variability is a natural and universal phenomenon that contributes to diversity and beauty. Statement II is incorrect because psychological attributes are complex and multidimensional rather than unidimensional or strictly linear.

Psychological attributes such as intelligence, personality, and emotions are complex and multifaceted. Therefore, they are assessed across multiple domains rather than through a single isolated dimension. This multidimensional approach provides a more accurate understanding of human behaviour.

In highly powerful situations such as emergencies, external circumstances can dominate personal traits. Even individuals with very different personalities may behave similarly because situational demands strongly guide behaviour. Therefore, differing trait combinations may respond in "almost the same" ways.

Psychological traits exist in varying degrees rather than in an absolute all-or-none manner. For example, individuals differ in how dominant, sociable, or emotionally stable they are. Therefore, the statement suggesting that traits are entirely present or absent is incorrect.

Weak academic performance can be improved by assessing intellectual strengths and weaknesses. Job life satisfaction is strongly related to personal interests. Social adjustment problems are linked to personality characteristics, while decision-making and problem-solving depend on cognitive abilities. Thus: 1 → ii 2 → i 3 → iii 4 → iv

A psychologist first identifies the social adjustment problem. Next, systematic testing procedures are implemented to gather reliable behavioural data. Finally, personality characteristics are formally measured and interpreted to understand the adjustment issue scientifically. Thus, the correct sequence is: II → III → I

Intelligence tests are designed to provide a broad measure of an individual's general cognitive competence, including reasoning, problem-solving, and the ability to benefit from education and schooling. Cognitive abilities are multidimensional and influence various aspects of learning and adaptation.

Emotional intelligence first requires perceiving emotions in oneself or others. Next, the emotional information is accurately appraised and understood. Finally, this emotional understanding is used to guide thinking, judgement, and actions effectively. Thus, the correct sequence is: III → I → II

The passage explicitly states that the study of individual differences became one of the main concerns of modern psychology from the time of Francis Galton. Galton's work laid the foundation for psychological testing and the scientific study of human variability.

The passage emphasizes that after understanding general psychological principles, it is necessary to study how individuals differ and how these differences can be scientifically assessed. This helps psychologists understand uniqueness in behaviour, intelligence, personality, and other attributes.

Formal psychological assessment involves the scientific measurement and evaluation of psychological attributes using standardized tools and procedures. Clinics use such tests for diagnosis, counselling, prediction, and guidance in practical settings.

Statement I is correct because psychological tests are extensively used in personnel selection, placement, counselling, and training. Statement II is incorrect because psychological assessment has significant practical applications in education, industry, counselling, and clinical settings. Therefore, only Statement I is correct.