Analyzing provided statements: Statement I and Statement II.
Statement I: In C3 plants, O2 binding to RuBisCO reduces CO2 fixation.
This statement is true. In C3 plants, RuBisCO, the enzyme responsible for CO2 fixation, also binds O2, initiating photorespiration. This process reduces photosynthetic efficiency by oxidizing ribulose bisphosphate and consequently lowering CO2 assimilation into sugars.
Statement II: In C4 plants, mesophyll cells exhibit minimal photorespiration, and bundle sheath cells show none.
This statement is false. C4 plants minimize photorespiration through a mechanism involving initial CO2 fixation into a four-carbon compound in mesophyll cells. This compound is then transported to bundle sheath cells, releasing CO2 for the Calvin cycle. This spatial CO2 concentration in bundle sheath cells effectively prevents photorespiration there. Mesophyll cells themselves do not intrinsically limit photorespiration; it is the CO2 concentrating mechanism in bundle sheath cells that achieves this. Thus, the notion of minimal photorespiration in mesophyll cells due to their inherent properties is inaccurate.
Based on these evaluations, the correct conclusion is: Statement I is true but Statement II is false.