Aldehydes and ketones with at least one \( \alpha \)-hydrogen can undergo an aldol reaction due to the acidity of the \( \alpha \)-hydrogens.
This acidity allows the formation of an enolate ion, which then attacks the carbonyl carbon of another molecule, leading to the aldol product.
Therefore, Statement I is correct.
Benzaldehyde does not contain an \( \alpha \)-hydrogen, so it cannot form an enolate ion.
However, ethanol (in this context, likely meaning acetaldehyde) does have \( \alpha \)-hydrogens and can participate in the aldol reaction with itself or with other compounds that can form enolate ions.
Thus, a cross-aldol product can form between benzaldehyde and acetaldehyde (ethanal).
Therefore, Statement II is incorrect.
Statement I is correct, but Statement II is incorrect. The correct answer is Option (4).