Step 1: Understanding the Concept
Water potential of plant cells is usually negative. A less negative value means a higher water potential.
Step 2: Statement I
Water always moves down the water potential gradient, that is from the cell with less negative value to the cell with more negative value. So this statement is true.
Step 3: Statement II
Movement of water between cells, including through plasmodesmata, is decided by the water potential difference between neighbouring cells. So this statement is also true.
Final Answer:
Both statements are correct.
\[ \boxed{\text{(A) }\text{Both Statement I and statement II are correct.}} \]