Step 1: Understanding the Concept
Competition is an interaction in which the fitness of one species is lowered in the presence of another species using the same resource.
Step 2: Check the options
Resources need not be limiting, because interference competition can occur by feeding efficiency being reduced. Fitness of one species is lowered by the other, which defines competition.
Step 3: The incorrect one
It is wrong that only related species compete. Unrelated species, such as flamingoes and fishes in a lake feeding on zooplankton, also compete.
Final Answer:
The incorrect statement is that only related species compete.
\[ \boxed{\text{(B) }\text{Only related species compete with each other.}} \]