Step 1: Recall the meaning of gymnosperm.
Gymnosperm means naked seed, which already hints that the seeds are not enclosed in a fruit.
Step 2: Look at the gametophytes in Statement I.
In gymnosperms the gametophytes are very reduced and never live freely on their own.
Step 3: Confirm Statement I.
The male gametophyte stays inside the microsporangium and the female gametophyte stays inside the megasporangium within the ovule, so both remain within the sporangia. Statement I is correct.
Step 4: Examine the seeds in Statement II.
The ovules sit exposed on cones or megasporophylls and are not enclosed in an ovary wall.
Step 5: Confirm Statement II.
Since seeds form from these exposed ovules and have no fruit covering, the seeds are not covered. Statement II is correct.
Step 6: Combine both judgements.
Both statements are accurate, so the right choice is the one saying both are correct.
\[ \boxed{\text{Both Statement I and Statement II are correct}} \]