Step 1: Check Statement I using the most economical channel condition.
A rectangular open channel is most hydraulically economical when its wetted perimeter is minimized for a given flow area, and working through this optimization shows the condition is reached when the base width equals twice the depth of flow, \( b = 2y \), not when the width equals the depth. So Statement I, which claims width equal to depth, is incorrect.
Step 2: Check Statement II using the definition of compressible flow.
Compressible flow is, by definition, flow in which fluid density changes appreciably in response to pressure changes, such as high-speed gas flow. A flow where density stays constant throughout is instead called incompressible flow. So Statement II has the definition backwards, and is also incorrect.
Step 3: Combine the two findings.
Since neither statement holds up when checked against the standard hydraulic and fluid mechanics definitions, both must be marked incorrect together.
\[ \boxed{\text{Both Statement (I) and Statement (II) are incorrect.}} \]