Step 1: Concept
Bioinformatics tools and databases serve specific roles in sequence analysis and data storage.
Step 2: Meaning
BLAST is an algorithm for local alignment, while GenBank is a primary sequence database.
Step 3: Analysis
Statement I is correct: BLAST (Basic Local Alignment Search Tool) is designed to find similarities between biological sequences (DNA or Protein). Statement II is incorrect because GenBank is an open-access, annotated collection of all publicly available DNA sequences, not specifically a phenotypic repository for human gene knockouts.
Step 4: Conclusion
Only Statement I accurately describes the tool mentioned.
Final Answer: (C)