I thought the Indian DGCA had started to grow up.. And refrain from asking silly questions?
Anyway, most probably the answer he was getting at is that a cellular telephone device *can* use assisted GPS where it triangulates it's position from the cell towers. This is used to speed up the acquisition of positional information.
Most cell phone handsets will try to acquire as many GPS satellites as possible, so the answer about it not computing a 3D position is incorrect.
To be honest the question is stupid, as there is no right answer unless he specifies a make, model and version number of a particular handset.
Even then there can be significant differences, as India found out to its detriment with the Blackberry, you can buy a version with security services standard end to end encryption. The GOI were far from happy about that!