Given below are two statements:
Statement I: The generation of cellular diversity is known as differentiation.
Statement II: Formation of interfascicular cambium and cork cambium from fully differentiated parenchyma cells are examples of dedifferentiation.
In light of the above statements, choose the most appropriate answer from the options given below:
1. Both statement I and statement II are correct.
2. Both statement I and statement II are incorrect.
3. Statement I is correct but statement II is incorrect.
4. Statement I is incorrect but statement II is correct.