Answer:(a) Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.
Explanation:
Statement-I is correct as Israel has indeed established diplomatic relations with some Arab states in recent years. This represents a significant shift in the region's geopolitical dynamics.
Statement-II is also correct as the 'Arab Peace Initiative' mediated by Saudi Arabia was proposed in 2002 and later endorsed by the Arab League. The initiative offered a comprehensive peace plan, including the normalization of relations between Israel and Arab states in exchange for Israeli withdrawal from occupied territories.
Therefore, both statements are correct, and Statement-II provides the correct explanation for Statement-I, indicating the connection between Israel's diplomatic relations with Arab states and the Arab Peace Initiative.