Step 1: Understanding the Concept
Two separate facts are tested here: the cause of ketone body formation and the action of the hormone enterogastrone.
Step 2: Check Statement I
Ketone bodies rise when cells cannot use glucose and the body burns fats instead. This happens in diabetes mellitus (insulin deficiency).
Diabetes insipidus is caused by lack of ADH and only causes dilute urine and thirst, so Statement I is incorrect.
Step 3: Check Statement II
Enterogastrone is released by the duodenum when fatty chyme arrives. It slows gastric contractions and reduces gastric juice secretion, so Statement II is correct.
Step 4: Choose the option
Statement I is incorrect and Statement II is correct, which is option (D).
Final Answer:
Statement I is incorrect but Statement II is correct.
\[ \boxed{\text{(D) }\text{Statement I is incorrect but statement II is correct.}} \]