Which of the following statements concerning the federal estate tax marital deduction is (are) correct?

I. It applies only to decedents of common-law states.

II. It applies only to property interests included in a decedents gross estate.

(A) I only.

(B) II only.

(C) Both I and II.

(D) Neither I nor II.

Provide a detailed explanation to your answer. Only answer if you have a strong estate planning background.