Step 1: Understanding the Concept:
The Khapra beetle, Trogoderma granarium, is a highly destructive primary pest of stored grains, particularly wheat.
Its unique physiology allows it to withstand extreme environmental conditions that would be lethal to other storage insects.
Step 2: Detailed Explanation:
Statement I: The Khapra beetle larva can enter a state of facultative diapause.
During this period, its respiration rate drops significantly, enabling it to survive for extended durations in airtight storage structures with very low oxygen availability.
Thus, Statement I is correct.
Statement II: The Khapra beetle is a poor competitor in open storage or high moisture conditions.
It thrives specifically in closed, hot, dry, and dark warehouse environments.
In contrast, pests like the lesser grain borer (Rhyzopertha dominica) easily outcompete it under open storage conditions.
Thus, Statement II is incorrect.
Step 3: Final Answer:
Since Statement I is correct but Statement II is incorrect, the correct choice is option (C).