An alternate way to locate the critical points. From $f_x=0$ and $f_y=0$: \[x^2=y,\qquad y^2=x.\] Subtracting, $x^2-y^2=y-x$, so $(x-y)(x+y)=-(x-y)$, which gives \[(x-y)(x+y+1)=0.\] So either $x=y$, or $x+y=-1$.
Case 1: $x=y$. Then $x^2=y=x$, so $x^2-x=0$, $x(x-1)=0$, giving $x=0$ or $x=1$. This produces the points $(0,0)$ and $(1,1)$.
Case 2: $x+y=-1$, i.e. $y=-1-x$. Substituting into $x^2=y$: $x^2=-1-x$, so $x^2+x+1=0$, whose discriminant is $1-4=-3<0$. No real solution here.
So $f$ has exactly two real critical points, $(0,0)$ and $(1,1)$.
Classify using Hessian eigenvalues. The Hessian is $H=\begin{pmatrix}6x & -3\\ -3 & 6y\end{pmatrix}$.
At $(0,0)$: $H=\begin{pmatrix}0&-3\\-3&0\end{pmatrix}$, eigenvalues solve $\lambda^2-9=0$, so $\lambda=\pm3$. Opposite signs mean $H$ is indefinite, so $(0,0)$ is a saddle point.
At $(1,1)$: $H=\begin{pmatrix}6&-3\\-3&6\end{pmatrix}$, trace $=12$, determinant $=27$, so $\lambda^2-12\lambda+27=0$ gives $\lambda=9$ or $\lambda=3$, both positive. $H$ is positive definite, so $(1,1)$ is a local minimum.
This confirms one saddle point and one local minimum, with no third critical point and no local maximum, matching statement (II). \[\boxed{\text{Only (II) is true}}\]