Step 1: Understanding the Concept:
Space utilization in processing plants is important.
There are guidelines for equipment floor area.
Step 2: Key Formula or Approach:
No specific formula.
Need to know plant layout standards.
Step 3: Detailed Explanation:
Statement I: Equipment should occupy 80-90% of floor area - incorrect.
Typically, equipment occupies 30-50% of the floor area.
Statement II: Ensures effective utilization of space - correct.
Thus, Statement I is incorrect, but Statement II is correct.
Step 4: Final Answer:
Statement I is incorrect but Statement II is correct.
Hence, the correct option is (D).