Step 1: Understanding the Concept
Blood clotting is a cascade ending in a fibrin mesh.
Step 2: Statement I
Prothrombinase converts inactive prothrombin into active thrombin, so this statement is correct.
Step 3: Statement II
Thrombin converts soluble fibrinogen into insoluble fibrin threads. The statement reverses the solubility, so it is incorrect.
Final Answer:
Statement I is correct and Statement II is incorrect.
\[ \boxed{\text{(C) }\text{Statement I is correct but statement II is incorrect}} \]