The correct option states that both Statement II and Statement III are correct and explain Statement I in the context of a circular economy. A circular economy aims to minimize waste and make more efficient use of resources by keeping products, materials, and resources in use for as long as possible. By reducing the use of raw materials (Statement II) and minimizing wastage in the production process (Statement III), it inherently lowers the emissions of greenhouse gases (Statement I), as less energy and fewer raw materials are required, leading to a smaller carbon footprint overall. This holistic approach is fundamental in fostering sustainable development, a key theme in environmental and economic policies reflected in UPSC exams.