Correct option is B
Observational research does not involve active manipulation of variables or control of the environment; rather, it involves observing subjects in their natural state without interference. Therefore, Statement I is false.
Statement II is also false because observational research does not typically allow the researcher to eliminate the influence of extraneous factors. Instead, it often results in a higher number of extraneous factors because there is no manipulation or control exerted over the variables or the environment.