Step 1: Understanding the Concept:
Plants have different mechanisms to tolerate drought.
These include stress avoidance and stress tolerance.
Step 2: Key Formula or Approach:
No specific formula.
Need to understand drought tolerance mechanisms.
Step 3: Detailed Explanation:
Statement I: Plants tolerate drought either by mitigating stress or showing tolerance.
This is true.
Statement II: Plants tolerate stress by showing resistance to dehydration and preventing leaf collapse.
This leads to maintaining high internal water potential.
However, plants maintain low water potential during drought, not high.
Thus, Statement II is false.
Step 4: Final Answer:
Statement I is true but Statement II is false.
Hence, the correct option is (C).