Step 1: General effect of temperature.
Temperature plays a major role in determining the distribution of organisms and ecosystems.
Step 2: Analyzing statements.
(A) Correct — Temperature is indeed one of the most important environmental factors influencing organisms.
(B) Correct — Temperature decreases as we move from the equator to the poles.
(C) Incorrect — Actually, temperature decreases with increase in altitude/height, not increases.
(D) Correct — At the summit of a mountain, the temperature is low due to high altitude.
Step 3: Conclusion.
Thus, the incorrect statement is Temperature increases with increase in height.