Step 1: Read both statements carefully.
Statement I: In democratic leadership style, the followers are given a high degree of independence to formulate their own objectives and ways to achieve them. Statement II: In autocratic leadership style, communication is only one-way, with the subordinates only acting according to the command given by their managers.
Step 2: Recall the three main leadership styles.
The three key leadership styles are: (1) Autocratic (Authoritarian), (2) Democratic (Participative), and (3) Laissez-Faire (Free-Rein). Each has distinct characteristics regarding decision-making and communication flow.
Step 3: Evaluate Statement I about democratic leadership.
In democratic leadership, the leader consults the group, invites suggestions, and then guides the group toward a collective decision. However, the leader still participates in and influences the final decision. The high degree of independence to formulate their own objectives without any leader involvement is actually the description of Laissez-Faire (free-rein) leadership, not democratic leadership. So Statement I is false; it incorrectly describes democratic leadership.
Step 4: Evaluate Statement II about autocratic leadership.
In autocratic leadership, all authority is centralised with the leader. The leader makes all decisions independently and communicates these as orders to subordinates. Subordinates are expected to comply without questioning. Communication flows in only one direction, downward from leader to subordinate. There is no upward feedback or input from subordinates. So Statement II is perfectly correct.
Step 5: Match the findings with the options.
Statement I is false and Statement II is true. This matches option (B).
Step 6: Conclude.
The common confusion between democratic and free-rein leadership is the key here. Democratic leaders involve the team but still lead; free-rein leaders hand over independence completely.
\[ \boxed{ \text{(B) Statement I is false and Statement II is true.} } \]