Step 1: Understand photosystems in plants.
Photosystems are pigment-protein complexes present in the thylakoid membranes of chloroplasts. They play a central role in the light reactions of photosynthesis.
Step 2: Analyze Photosystem I location.
Photosystem I (PS I) is mainly located in the unstacked regions of thylakoid membranes, also known as stroma lamellae. Therefore, statement (A) is correct.
Step 3: Analyze Photosystem II location.
Photosystem II (PS II) is mainly present in the stacked thylakoid membranes called grana. Hence, statement (B) is correct.
Step 4: Analyze wavelength absorbed by PS I.
The reaction center chlorophyll of Photosystem I is known as \(P_{700}\) because it absorbs light maximally at approximately \(700\) nm wavelength. Therefore, statement (C) is correct.
Step 5: Understand water splitting.
Water splitting or photolysis occurs in Photosystem II, not in Photosystem I. PS II contains the oxygen-evolving complex responsible for breaking water molecules into electrons, protons, and oxygen.
Step 6: Identify the incorrect statement.
Since water splitting is performed by PS II and not PS I, statement (D) is false.
Step 7: Final conclusion.
Therefore, the statement that is NOT true is
\[
\boxed{\text{Photosystem I is responsible for water splitting}}
\]
Hence, the correct answer is option (D).