Step 1: What we are checking.
Two statements about digestion are given. We test each one and then pick the option that matches our verdict.
Step 2: Check statement I.
Statement I says pepsinogen from the chief cells of the stomach turns into active pepsin in the presence of HCl. This is true. The chief cells release inactive pepsinogen, and the hydrochloric acid from the parietal cells converts it into the active enzyme pepsin, which then digests proteins.
Step 3: Check statement II.
Statement II says bile contains digestive enzymes that break fats into fat granules. This is wrong. Bile has no digestive enzymes at all. It contains bile salts that only emulsify fats, breaking big fat drops into tiny droplets so that the real fat-digesting enzyme, lipase, can act on them.
Step 4: Combine the verdicts.
Statement I is correct and statement II is incorrect.
Step 5: Pick the option.
This matches option 3. The options saying both are correct, both wrong, or only II correct do not fit.
Step 6: Conclusion.
Therefore the correct answer is "Statement I is correct II is incorrect". \[ \boxed{\text{I correct, II incorrect}} \]