Step 1: Understanding the Concept:
Acid sulfate soils contain iron sulfides (primarily pyrite, $\text{FeS}_2$).
When exposed to oxygen due to drainage or excavation, these sulfides oxidize to produce sulfuric acid ($\text{H}_2\text{SO}_4$), which severely lowers soil pH.
Step 2: Detailed Explanation:
- Statement (I) is true: The extreme acidity (pH often $<$ 0) of acid sulfate soils dissolves minerals, releasing toxic concentrations of aluminum ($\text{Al}^{3+}$), iron ($\text{Fe}^{3+}$), and manganese ($\text{Mn}^{2+}$) into the soil solution and surrounding water bodies.
- Statement (II) is false: While some acid sulfate soils contain organic matter, they are highly toxic and unproductive in their natural state due to nutrient deficiencies, aluminum toxicity, and active acid generation.
They require intensive management, such as liming and controlled water tables, to support agricultural crops or diverse plant life.
Step 3: Final Answer:
Statement I is true, and Statement II is false.