What is an aromatic alcohol?
'Aromatic alcohol' is not a term that appears anywhere in the IUPAC literature - while its meaning is evident, it doesn't make sense in the same way that 'aromatic heterocyclic' does so is probably best avoided. 
What is defined by IUPAC is the definition of a phenol, and the definition of an aryl group. The definitions below come from an old IUPAC glossary of  'class names' which, although old, is still referenced in the most recent organic nomenclature guidelines and the most recent IUPAC Gold Book. 


  phenols:
  Compounds having one or more hydroxy groups attached to a benzene or other arene ring
  
  aryl groups: Groups derived from arenes by removal of a hydrogen atom from a ring carbon atom. 
  
  Glossary of Class Names of Organic Compounds and Reactive Intermediates Based on Structure. 
  Pure App. Chem. 1995, 67, 1307


To actually answer your question, the answer is (II) - as Jerepierre alluded to, the NCERT books / guides are renowned for being less that accurate, and a quick search around chem.SE will reveal just how many errors there are! In this case, its hard to tell if the error is just due to typesetting (someone typed III instead of II), or it it lies with the ambiguity of the term 'aromatic alcohol' (is it referring to phenols, or is it referring to a compound which contains both an aryl ring and a hydroxyl group). 

I think its fair to assume that the question is asking you to identify the phenols, in which case the answer is (II) is because A and D are the only structures in which the hydroxyl group is directly attached to a benzene or other arene ring, which is our working definition of a phenol / aromatic alcohol.