Subsidies result in ‘increase’ in equilibrium quantities and lead to dead-weight losses from overproduction. Statement II is incorrect. The remaining two statements are correct.
I had that same problem taking exams @jmsatchwell‌ ! If I had time at the end of the exam I would always double check to make my answers matched what I meant to put. Most people probably don’t need to do that, but for me it was well worth the time!