(b) II, III and IV
Statement I is incorrect — majoritarianism undermines democracy. Statements II, III, and IV correctly describe power sharing: it creates balance, reduces conflict, and is the essence of democracy.
The source passage ("Why power sharing is desirable?") states: "power sharing is good because it helps to reduce the possibility of conflict between social groups" (Statement III) and "Power sharing is the very spirit of democracy" (Statement IV). It also implies balance and harmony among groups (Statement II). Majoritarianism is explicitly criticised — "Imposing the will of majority community over others… undermines the unity of the nation" — so Statement I is false. Eliminate any option containing I.