Monte Carlo Simulation and bootstrapping are two major methods to do simulation. Tom Feng, FRM, a junior risk intern working in Golden hedge fund, is debating with his colleagues on which method is better in current environment. Tom makes the following statements:Statement I: The major limitation of bootstrapping is the challenge to specify the data generating process.Statement II: The two classes of Monte Carlo Simulation are iid simulation and CBB simulation.Statement III: The difference between Monte Carlo Simulation and bootstrapping is that simulation uses observed data to estimate key model parameter while bootstrapping directly uses the observed data to simulate a sample with similar characteristics.How many of these statements are incorrect?