In order to determine the correctness of the given statements, we need to analyze each one individually:
Statement I: In a bioreactor, small volumes of cultures are developed where useful bio products are produced.
Analysis: A bioreactor is indeed used for cultivating microorganisms or cells in which valuable biological products like enzymes, antibodies, or other biochemicals are produced. Typically, bioreactors support and control the environmental conditions such as temperature, pH, and oxygen levels to optimize the production of bio-products. Therefore, this statement is true.
Statement II: In downstream processing, products formulated with preservatives are ready for marketing without quality testing.
Analysis: Downstream processing involves the purification and formulation of bioproducts after their initial production. Even if preservatives are added, products still require thorough quality testing. This step ensures that the products meet the required standards and are safe for use. Thus, claiming that products are ready for marketing without quality testing is incorrect. Therefore, this statement is false.
After analyzing both statements, we conclude that Statement I is true, but Statement II is false.
Therefore, the correct response is (C).