Statement-I: It is False.
The timeout value cannot be fixed for entire duration as it will turn timer to static timer, we need dynamic timer for timeout.
Statement-II: It is True.
Basic algorithm, Jacobson's algorithm, Karl's modification; these three algorithms are to be appropriate to RTT estimation algorithm used to set timeout value dynamically.
Statement-III: It is False.
Because timeout value is set to twice the propagation delay in data link layer where hop to hop distance is known, not in TCP layer.