Step 1: Understanding the Concept
When oxygen is short, pyruvic acid is reduced to lactic acid by lactate dehydrogenase.
Step 2: Statement I
During vigorous exercise the oxygen supply to skeletal muscle falls short, so lactic acid accumulates and causes fatigue. This is correct.
Step 3: Statement II
At rest, oxygen is available again and lactic acid is oxidised back to pyruvic acid. Part is respired and part goes to the liver to remake glucose (Cori cycle). This is also correct.
Final Answer:
Both statements are correct.
\[ \boxed{\text{(A) }\text{Both Statement (I) and Statement (II) are correct.}} \]