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Option 1 states that the procedure and grounds for the removal of the Comptroller and Auditor General of India (CAG) are the same as that of a Judge of the Supreme Court. This statement is correct. The CAG can only be removed in a manner similar to that of a Judge of the Supreme Court, which requires an elaborate process involving an impeachment motion in the Parliament.
Option 2 states that the CAG prescribes the form in which accounts of the Union and the States are to be kept. This statement is also correct. The CAG is responsible for the auditing and accounting of the Union and State governments. They have the power to prescribe the form in which these accounts are to be maintained, thus ensuring transparency and accountability in financial matters.
Therefore, both Option 1 and Option 2 are correct. The correct answer is Option 3 - Both I and II.