Static analysis involves analyzing the software's code, design, and structure without executing the program. It can uncover various types of defects, including security vulnerabilities (II) and non-conformance to specifications and standards (III). However, static analysis cannot replace dynamic testing (I), which involves executing the software to observe its behavior under various conditions. Dynamic testing can identify failures that static analysis cannot, such as those related to runtime issues and interaction between different parts of the software. Statement IV is false because static analysis does not detect failures; it detects defects. Failures are observed when the software is executed, which is beyond the scope of static analysis.