There are two statements:

Statement I: The principle of caste hierarchy is inseparable from the idea that different castes form part of a larger social whole.

Statement II: Castes were theoretically expected to exist as entirely independent social units with no relationship to one another.

Statement I is correct but Statement II is incorrect.

The correct answer is Option 3: Statement I is correct but Statement II is incorrect.

The caste system combined separation with wholism. Castes were distinct from one another, but they were also understood as parts of a larger hierarchical social order.

Statement I: The principle of caste hierarchy is inseparable from the idea that different castes form part of a larger social whole. — Correct.

Statement II: Castes were theoretically expected to exist as entirely independent social units with no relationship to one another. — Incorrect. The notion of a caste system itself requires the existence of a larger social whole.