1. Option A.
Explanation: First sentence says- Scientists formerly believed that the rocky planets—Earth, Mercury, Venus, and Mars—were created by the rapid gravitational collapse of a dust cloud, a deflation giving rise to a dense orb. so it indicates a fast process.
On the other hand Schimdt's theory says,
"Schmidt’s 1944 theory of accretion. According to this theory, cosmic dust gradually lumped into" so its a slow process.
Stem II is wrong, because the first theory does not provide any explanation to what caused the craters while Schimdt's theory does. No ground of disagreement whatsoever.
Stem III is wrong because, both theories mention cosmic dusts and dust clouds , but none of them particularly recognizes it in any way. All they care about is How the planets are formed, not what constitute those.
2. Option D.
We need to rephrase the bold part in the given sentence: That view was challenged in the 1960s when studies of Moon craters revealed that these craters were caused by the impact of objects that were in great abundance about 4.5 billion years ago but whose number appeared to have quickly decreased shortly thereafter.