Step 1: Read both statements.
Statement I says ovulation is caused by an LH surge that ruptures the Graafian follicle. Statement II says the leftover follicle becomes the corpus luteum and secretes large amounts of estrogen.
Step 2: Recall the mid-cycle event.
Around day 14, LH rises sharply to a peak called the LH surge, and this surge triggers ovulation by rupturing the mature Graafian follicle.
Step 3: Judge Statement I.
Since the LH surge truly causes the follicle to rupture and release the oocyte, Statement I is correct.
Step 4: Recall what the corpus luteum does.
After ovulation the ruptured follicle changes into the corpus luteum, whose main secretion is progesterone, needed to maintain the endometrium.
Step 5: Judge Statement II.
Statement II claims it secretes large amounts of estrogen, but the major hormone is progesterone, so Statement II is incorrect.
Step 6: Combine the verdicts.
Statement I is correct and Statement II is incorrect, which is option 4.
\[ \boxed{\text{Statement I is correct but Statement II is incorrect}} \]