Let's analyze the statements provided: Statement I and Statement II.
Statement I: In C3 plants, some O2 binds to RuBisCO, hence CO2 fixation is decreased.
This statement is true. In C3 plants, RuBisCO, the enzyme responsible for fixing CO2, can also bind to O2, which leads to a process known as photorespiration. This process decreases the overall efficiency of photosynthesis because it results in the oxidation of ribulose bisphosphate and ultimately decreases the amount of CO2 being fixed into sugars.
Statement II: In C4 plants, mesophyll cells show very little photorespiration while bundle sheath cells do not show photorespiration.
This statement is false. C4 plants have evolved a distinctive mechanism to minimize photorespiration by initially fixing CO2 into a four-carbon compound in the mesophyll cells. This compound is then transported to bundle sheath cells, where CO2 is released for the Calvin cycle. The process of concentrating CO2 in the bundle sheath cells allows C4 plants to effectively prevent photorespiration in these cells. However, it is important to note that mesophyll cells do not significantly limit photorespiration on their own, rather it is the spatial separation and concentration of CO2 in bundle sheath cells that minimizes this process. Therefore, the implication of minimal photorespiration in mesophyll cells due to their intrinsic properties is incorrect.
Based on the evaluations of the statements, the correct answer is: Statement I is true but Statement II is false.