Step 1: Understanding the Concept
Phloem transport is explained by the Munch pressure flow hypothesis.
Step 2: Statement (I)
At the source, sugar raises the solute concentration, so water enters the sieve tubes from nearby cells and xylem by endosmosis. Statement (I) is correct.
Step 3: Statement (II)
Entry of water raises the turgor pressure, which pushes the sugar solution into the sieve tubes. It is not a decrease in turgor pressure, so Statement (II) is incorrect.
Final Answer:
Statement (I) is correct but Statement (II) is incorrect.
\[ \boxed{\text{(C) }\text{Statement (I) is correct but Statement (II) is incorrect}} \]