Correct option is D
Explanation:
Conclusion I follows because the decision to install smart traffic signals after a rise in accidents shows that the administration believes improving traffic flow management can help reduce accidents.
Conclusion II follows because the statement says the new system will use real-time traffic data, which logically implies that such real-time data was not being used earlier.
Conclusion III does not follow because the statement does not say that all accidents are caused only by improper signal timing; it only mentions a rise in accidents during peak hours.
Hence, both conclusions I and II follow.