Step 1: Recall Samuel’s condition.
Samuel says: “Exactly three suspects are telling the truth.” If Samuel is truthful, then exactly three statements (including Samuel’s) must be true. Hence, there are 3 truth-tellers and 6 liars.
Step 2: Eliminate Panda.
Panda says Samuel is lying. If Samuel is truthful, Panda must be lying.
Step 3: Case analysis.
Case I: Assume Shrinivas is telling the truth.
If Shrinivas is truthful, then Nagraj fudged the accounts. Jose, who supports Shrinivas, must also be truthful. That already gives Samuel, Shrinivas, and Jose as truth-tellers. But Datta’s statement (“Shrinivas did not fudge”) directly contradicts Shrinivas, meaning Datta is lying. However, Nagraj’s statement partly aligns and would add more truth-tellers, exceeding the limit of three. Contradiction. Therefore, this case is invalid.
Case II: Assume Datta is telling the truth.
If Datta is truthful, then “Shrinivas did not fudge” is correct, meaning Shrinivas is lying. Hence, Nagraj’s claim (“Datta is lying…”) is false. Ejaz’s claim is also false. Jose’s claim (“Shrinivas is telling the truth”) is false. Ganeshan’s statement is false. Panda is already lying. Therefore, the truth-tellers are: Samuel, Datta, and Chaudhary. This gives exactly three truth-tellers, which is valid.
Case III: Assume Datta is lying.
If Datta is lying, then Shrinivas’s status changes and may create more than three truth-tellers. In this scenario, multiple overlaps occur, leading to more than three truth-tellers. This contradicts Samuel’s condition. Therefore, invalid.
Step 4: Conclusion.
The only valid distribution of truth-tellers is Samuel, Datta, and Chaudhary.
\[
\boxed{\text{Correct Answer: (A) Chaudhary and Datta are telling the truth}}
\]