The correct option is I only. The President of India has the power to grant pardons under Article 72 of the Constitution, and while this power is largely discretionary, its exercise can be subjected to limited judicial review to ensure it is not arbitrary or capricious. However, statement II is incorrect because the President must act on the advice of the Council of Ministers, thereby ensuring accountability and alignment with government policy. This distinction is crucial in understanding the balance between the President's pardoning authority and the role of the executive in the Indian political system, a common topic in UPSC examinations.