We are given the recurrence relation for the sequence \(\{a_n\}\) as:
\[
\frac{8}{a_{n+1}} = \frac{7}{a_n} + \frac{a_n^2}{343}
\]
Rearranging the equation:
\[
a_{n+1} = \frac{8}{\frac{7}{a_n} + \frac{a_n^2}{343}}
\]
We will now analyze the two statements.
Step 1: Statement (I) - Is \(\{a_n\}\) monotonically increasing?
To check if the sequence is monotonically increasing, we need to determine whether \(a_{n+1}>a_n\). Substituting the recurrence relation:
- As \(a_n\) increases, \(\frac{7}{a_n}\) decreases, and \(\frac{a_n^2}{343}\) increases.
- This suggests that the denominator of the right-hand side of the equation is increasing, which in turn suggests that \(a_{n+1}\) is increasing as \(n\) increases.
Therefore, the sequence \(\{a_n\}\) is monotonically increasing.
Step 2: Statement (II) - Does \(\{a_n\}\) converge to a value in the interval \([3, 7]\)?
We are also given that \(a_n<7\) for all \(n \geq 2\), and we need to check if \(\{a_n\}\) converges to a value within the interval \([3, 7]\).
Taking the limit as \(n \to \infty\), let \(L\) be the limit of the sequence:
\[
L = \frac{8}{\frac{7}{L} + \frac{L^2}{343}}
\]
Solving this equation yields a value for \(L\) that lies within the interval \([3, 7]\), confirming that the sequence converges to a value within this range.
Thus, both statements (I) and (II) are true.