Concept:
The nervous system shows evolutionary progression from simple to complex forms:
• Sponges (Porifera) → No nervous system
• Cnidarians (e.g., Hydra) → Diffused nerve net
• Flatworms (Platyhelminthes) → Ladder-type nervous system
Step 1: Understand each statement.
• Cnidaria possess the first simple nervous system (nerve net)
• Diffused nervous system is the earliest form
• Plants use chemical signals (hormones) for coordination
Step 2: Analyze the incorrect statement.
• (A) Correct → Cnidarians are first to show nervous system \checkmark
• (B) Correct → Diffused nerve net is the primitive form \checkmark
• (C) Correct → Plants use chemical coordination \checkmark
• (D) Incorrect → Sponges lack nervous system and Hydra has nerve net, not ladder-type $\times$
Step 3: Conclusion.
Thus, the incorrect statement is:
\[
\text{Ladder type of nervous system is found in sponges and Hydra}
\]