Answer:
I believe the answer to be only II as well.
Step-by-step explanation:
In literature, conflicts are any sort of struggle between forces. Usually, we have a main character, a protagonist, who needs to fight some type of obstacle to his/her goal or growth. When the character's behavior does not fit in, when he/she is considered different, inferior, or even challenging by a group - family, friends, the government, etc. -, we have a character vs. society type of conflict. In the excerpt we are studying here, Lord Munodi was discharged by a cabal of ministers. Their reason was "insufficiency". As we can see, the character has a group as the force that goes against him, that tries to hinder his plans. That is expressed in the second option:
II. “by a cabal of ministers, was discharged for insufficiency”