Concepts of dominance deviation and breeding values:

• Statement (I) is correct: Dominance deviation ($D$) represents intra-allelic interaction between alleles at the same locus ($G = A + D$).
• Statement (II) is correct: In the absence of dominance ($D = 0$) and epistasis ($I = 0$), the genotypic value ($G$) consists entirely of the additive effect of genes; hence genotypic values and breeding values are identical ($G = A$).
• Both statements are fundamental theorems of quantitative genetics.
• Therefore, option 1 (Both Statement (I) and Statement (II) are correct) is the correct answer.

Epistasis and interaction deviations in quantitative genetics:

• Statement (I) is correct: Interaction deviations ($I$) occur when the genotypic value across multiple loci cannot be expressed solely as the sum of single-locus values; it arises when genotypes involve two or more interacting loci ($G = A + D + I$).
• Statement (II) is correct: Epistasis broadly describes non-allelic gene interactions where alleles at one gene locus mask, modify, or enhance the phenotypic expression of alleles at another locus.
• Both statements are correct.
• Therefore, option 1 (Both Statement (I) and Statement (II) are correct) is the correct answer.

Concepts of repeatability in quantitative genetics:

• Statement (I) is correct: Traits repeated in space (such as number of vertebrae, number of teats, left vs right horn structure) are morphological and structural characteristics.
• Statement (II) is incorrect: Repeatability ($r = \frac{V_G + V_{Ep}}{V_P}$) directly quantifies the proportion of phenotypic variance that is due to permanent effects; consequently, $1 - r = \frac{V_{Et}}{V_P}$ directly expresses the proportion of variance attributable to the temporary environment ($V_{Et}$).
• Thus, Statement (I) is correct but Statement (II) is incorrect.
• Therefore, option 3 is the correct answer.