Correct option is C
Statement I is true: Higher levels of CO2 can enhance plant growth through a process called CO2 fertilization, where plants use the increased availability of carbon dioxide for photosynthesis. This effect is observed in certain ecosystems, although it depends on other factors like nutrients and water availability.
Statement II is false: Deforestation decreases the biosphere’s capacity to sequester carbon. Forests act as major carbon sinks, absorbing CO2. When trees are cut down, this capacity is lost, and the atmosphere ends up with more CO2, worsening climate change.