Use the Following Three Statements to Answer This Question

Use the following three statements to answer this question:
I.There will be benefits from diversification as long as
.
II.As long as
, an equally weighted portfolio would be risk-free.
III.Diversification can never eliminate the total risk of the portfolio.

A) I is correct, II is incorrect, III is correct.
B) I is incorrect, II is correct, III is correct.
C) I and II are correct, III is incorrect.
D) I, II and II are incorrect.