The correct analysis of the statements hinges on the concepts of porosity and permeability in geology. Statement I correctly categorizes chalk as permeable and clay as impermeable, which is supported by Statement II, as chalk is porous and can absorb water. However, Statement III is misleading; while clay has low permeability, it does possess some degree of porosity, meaning it can hold water, albeit not as effectively as chalk. Thus, only II stands correct in relation to I, illustrating that the porosity of chalk enables its permeability, while the high water-holding capacity of clay complicates a definitive classification as "not at all porous." This nuanced understanding is crucial for examinations like the UPSC, where clarity in geological concepts is vital.