Step 1: Statement I
Australian marsupials such as kangaroo, koala, wombat and marsupial mole arose from a common ancestral stock and spread into different habitats. This is adaptive radiation, so Statement I is true.
Step 2: Statement II
The first mammals were small, shrew-sized animals. Very large mammals appeared much later, so Statement II is false.
Step 3: Conclusion
Statement I is correct but Statement II is incorrect.
Final Answer:
Statement I is correct and Statement II is incorrect.
\[ \boxed{\text{(C) }\text{Statement I is correct but statement II is incorrect}} \]