Step 1: Understanding the Concept
Roots absorb capillary water held in soil pores.
Step 2: Check Statement I
Capillary water is the main source for plants, so its presence is essential and Statement I is correct.
Step 3: Check Statement II
A high solute concentration lowers the water potential of soil water, so absorption is reduced.
Statement II is correct.
Final Answer:
Both statements are correct.
\[ \boxed{\text{(A) }\text{Both statement I and statement II are correct.}} \]