Option (3) is the correct answer because Statement II is incorrect as the transformation of spermatids into spermatozoa (sperms) are called spermiogenesis. After this, sperm head becomes embedded in the Sertoli cells and are finally released from the seminiferous tubules by the process called spermiation. Hence, Statement I is a correct statement. Spermatogenesis is the process of formation of sperms from spermatogonia.