Step 1: Statement I
Avery, MacLeod and McCarty (1944) purified Griffith's transforming principle. DNase stopped transformation, while protease and RNase did not, so it was DNA. This was the first experimental proof, hence Statement I is correct.
Step 2: Statement II
Hershey and Chase (1952) used T2 bacteriophage and E. coli with radioactive phosphorus and sulphur. Streptococcus pneumoniae was used by Griffith and by Avery's group, so Statement II is incorrect.
Step 3: Conclusion
Statement I is correct but Statement II is incorrect.
Final Answer:
Statement I is correct and Statement II is incorrect.
\[ \boxed{\text{(C) }\text{Statement I is correct but statement II is incorrect}} \]