Step 1: Recall the two types of polymers.
Thermoplastic polymers soften when heated and can be remoulded. Thermosetting polymers set hard on heating and cannot be remoulded.
Step 2: Classify polystyrene.
Polystyrene can be softened by heating and hardened again by cooling, again and again. So polystyrene is a thermoplastic, not a thermosetting polymer.
Step 3: Check statement I.
Statement I says polystyrene is thermosetting. Since it is really thermoplastic, statement I is false.
Step 4: Classify bakelite.
Bakelite is a heavily cross-linked polymer that sets permanently on heating. So bakelite is a thermosetting polymer, not thermoplastic.
Step 5: Check statement II.
Statement II says bakelite is thermoplastic. Since it is really thermosetting, statement II is false.
Step 6: Combine the results.
Both statements are wrong. \[ \boxed{\text{Both statements are not correct}} \]