Concept:
According to Molecular Orbital Theory,
\[
Bond\ Order=
\frac{N_b-N_a}{2}
\]
where
\[
N_b=\text{bonding electrons}
\]
\[
N_a=\text{antibonding electrons}
\]
Higher bond order means stronger bond and smaller bond length.
Step 1: Determine bond order of \(O_2^+\).
For \(O_2\),
\[
Bond\ Order=2
\]
Removing one electron from antibonding orbital gives
\[
O_2^+
\]
Therefore,
\[
Bond\ Order=2.5
\]
Step 2: Determine bond order of \(O_2^{2+}\).
Removing one more electron from antibonding orbital:
\[
O_2^{2+}
\]
Hence,
\[
Bond\ Order=3
\]
Step 3: Check Statement-I.
Bond order increases from
\[
2.5 \rightarrow 3
\]
As bond order increases, bond length decreases.
Therefore the statement
\[
\text{``bond length increases''}
\]
is false.
Hence Statement-I is incorrect.
Step 4: Check Statement-II.
\(O_2^+\) contains one unpaired electron.
Hence it is
\[
\text{Paramagnetic}
\]
\(O_2^{2+}\) contains no unpaired electron.
Hence it is
\[
\text{Diamagnetic}
\]
Therefore magnetic property changes.
Statement-II is correct.
Step 5: Choose the correct option.
Statement-I is false.
Statement-II is true.
Thus,
\[
\boxed{\text{Option (C)}}
\]