Solution

The correct answer is Statement I is incorrect but Statement II is correct

EXPLANATION:

• Statement (I): In datagram networks - routers hold state information about connections.
  • In a datagram network, each packet is routed independently from all others. When a packet is to be forwarded, a router does not take into consideration any other packets even if they arrived from the same source or are destined to the same output port.
  • Datagram networks are connection-less because they do not establish a physical or virtual path before the start of data transmission. An example of a datagram network is the Internet.
  • Here, routers do not keep any state information about connections because they, conceptually, have no connections to keep states for. Each packet is its own independent unit of information, unrelated to any other packet.
• Statement (II): In virtual circuit network- each virtual circuit requires router table space per connection
  • Virtual circuit networks, on the other hand, establish a defined path between endpoints before data is transmitted. This is called a 'virtual circuit'. This circuit is a logical concept, in that the network provides the appearance of a dedicated physical circuit to the connected devices, but it may be shared by other circuits.
  • Information packets sent between the same source and destination will follow the same path. The router must maintain state information, e.g., the path of each established circuit, in order to ensure all packets of the same connection follow the same path. This requires router table space for each connection.
  • This is why an ATM (Asynchronous Transfer Mode) network or a Frame Relay network, for example, which are virtual circuit networks, need to maintain a table of all established virtual circuits.

So, the Statement I is incorrect but Statement II is correct