Direct Answer
Nostro, Vostro, and Loro are Latin terms used in correspondent banking to describe the exact same bank account from three different perspectives to avoid confusion in international wire transfers
Statement I is correct. Nostro means Ours. For the State Bank of India, its US Dollar account held at Citibank in New York is its Nostro account, meaning Our money with you. Statement II is correct. Vostro means Yours. For the State Bank of India, the Indian Rupee account that Citibank maintains with them in Mumbai is a Vostro account, meaning Your money with us. Statement III is completely incorrect. Loro means Theirs. It does not relate to the central bank or sovereign debt. A Loro account is used when a third bank refers to an account held by one bank with another. For example, if Bank of Baroda refers to the account that State Bank of India holds with Citibank, Bank of Baroda calls it a Loro account, meaning Their account with them