The Peacock tarantula, or Gooty tarantula, is an arachnid, not a crustacean, and it is carnivorous, feeding primarily on insects. Statement I is therefore incorrect. While its distribution in India is indeed restricted to specific forest areas, particularly in the Eastern Ghats, the claim that it is 'only' limited to some forest areas might be considered relative, as its specific range is narrow. However, it is primarily arboreal, meaning it lives in trees, which is consistent with its natural habitat in forest environments. Therefore, statements II and III are considered correct within the context of typical UPSC question framing.