Step 1: Understand the problem.
Drought leads to scarcity of water, food, and fodder, as well as economic hardship.
Step 2: Evaluate Course I.
Financial assistance helps affected families meet urgent needs, buy essentials, and recover from economic damage — logical in the short term.
Step 3: Evaluate Course II.
Immediate provision of water, food, and fodder is essential for survival of people and livestock — directly addresses the life-and-death aspect.
Step 4: Combined necessity.
Both measures target different urgent requirements: monetary relief and direct supply of essentials.
\[
\boxed{\text{(D) Both I and II follow}}
\]