In the following questions, a few sentences are given. Identify the sentences that are grammatically and contextually correct.

(I) If you would have studied harder, you could have passed the exam.

(II) Despite the rain, the outdoor event went on as planned, attracting a large crowd.

(III) The company's profits have been steadily increasing due to its new marketing strategy.

Correct Option: Both (II) and (III)

Let us analyze each sentence step-by-step to determine its grammatical correctness:

Sentence (I): "If you would have studied harder, you could have passed the exam."
Analysis: This sentence uses a Third Conditional structure, which is used to express regrets or hypothetical situations in the past. The correct formula for a third conditional sentence is:
If + past perfect (had + past participle), ... modal + have + past participle.
Using "would have" in the "if-clause" (condition clause) is grammatically incorrect. It should be "If you had studied harder". Therefore, sentence (I) is incorrect.

Sentence (II): "Despite the rain, the outdoor event went on as planned, attracting a large crowd."
Analysis: "Despite" is used correctly as a preposition followed by a noun phrase ("the rain"). The main clause "the outdoor event went on as planned" and the participial clause "attracting a large crowd" are structurally sound and contextually meaningful. Therefore, sentence (II) is correct.

Sentence (III): "The company's profits have been steadily increasing due to its new marketing strategy."
Analysis: Subject-verb agreement is maintained ("profits" with "have been"), the present perfect continuous tense ("have been steadily increasing") correctly indicates an action that started in the past and continues into the present, and "due to" properly modifies the cause. Therefore, sentence (III) is correct.

Conclusion:
Sentences (II) and (III) are grammatically and contextually correct, while sentence (I) is incorrect. Hence, the correct choice is Both (II) and (III).