Step 1: Understanding the Concept:
In vitro sperm capacitation in cattle requires physiological modulators that trigger cholesterol efflux and calcium influx, whereas saturated EDTA strips divalent cations and impairs sperm viability.
Step 2: Detailed Explanation:
1. Statement I: EDTA is a strong chelator of divalent cations ($\text{Ca}^{2+}$ and $\text{Mg}^{2+}$). Because intracellular calcium influx is strictly essential for sperm hyperactivation and acrosome reaction, exposure to saturated EDTA immobilizes spermatozoa and inhibits capacitation. Hence, Statement I is incorrect.
2. Statement II: In bovine in vitro fertilization (IVF), washed bull spermatozoa are standardly capacitated in vitro by brief incubation with Heparin ($10\;\mu\text{g/mL}$) or high ionic strength saline media ($380\text{ mOsm/kg}$), which removes decapacitating seminal plasma surface proteins, promotes membrane cholesterol efflux, and triggers the acrosome reaction. Hence, Statement II is true.
Step 3: Final Answer:
Hence, Statement I is incorrect but Statement II is true, corresponding to option (D).