Step 1: Understanding the Concept
In peritoneal dialysis, wastes are removed from blood using the lining of the abdominal cavity.
Step 2: Check Statement I
A catheter puts dialysing fluid into the abdominal (peritoneal) cavity, and after some hours the fluid with wastes is drained. Statement I is correct.
Step 3: Check Statement II
The peritoneum works as a semipermeable dialysing membrane. Urea and other wastes pass through it from blood into the fluid, so a non-permeable membrane is impossible.
Step 4: Conclusion
Statement I is correct but Statement II is incorrect.
Final Answer:
Statement I is correct and Statement II is incorrect.
\[ \boxed{\text{(C) }\text{Statement (I) is correct but Statement (II) is incorrect.}} \]