Step 1: Munsell colour system has three attributes, Hue, Value, Chroma, where Hue is the chromatic composition, so Statement (I) is true.
Step 2: The Munsell hue wheel is built from five principal hues, Red, Yellow, Green, Blue, Purple.
Step 3: Since five intermediate hues sit between them, but the principal hues are exactly five, Statement (II) is also true.
Step 4: Correct option, both Statement (I) and Statement (II) are true.