Concept:
RNA world hypothesis suggests that early life forms used RNA as both genetic material and catalytic molecule before DNA evolved.
Step 1: Analyze Statement A.
RNA molecules (ribozymes) can catalyze reactions and may have self-replicating abilities. \checkmark
Step 2: Analyze Statement B.
RNA plays a role in protein synthesis (e.g., rRNA, tRNA, mRNA). \checkmark
Step 3: Analyze Statement C.
Mutations in RNA can generate diversity in early molecular systems. \checkmark
Step 4: Analyze Statement D.
RNA is not the most stable genetic material; DNA later evolved as a more stable molecule responsible for heredity and biodiversity.
Thus, statement (D) is incorrect.
Step 5: Conclusion.
\[
\text{Incorrect statement = RNA is the only stable genetic material}
\]