Let's evaluate both statements:
Statement I is correct. The RNA world hypothesis suggests that RNA was the first genetic material that could both store genetic information and catalyze chemical reactions. RNA is indeed unstable because of its reactivity, which makes it more prone to degradation.
Statement II is also correct. DNA evolved from RNA and is more stable because of its double-stranded structure, which allows for complementary base pairing and protection against mutations. DNA’s structure, along with repair mechanisms, provides greater stability than RNA.
Thus, the correct answer is Both Statement I and Statement II are correct.