Statement I : A compass needle placed near a current-carrying wire will get deflected. Statement I : A current-carrying wire creates magnetic field around it.

Statement I is true because a compass needle, which is essentially a small magnet, experiences a torque and deflects when placed near a current-carrying wire. This phenomenon was famously discovered by Hans Christian Oersted in 1820. Statement II is also true and provides the correct explanation for Statement I: an electric current flowing through a conductor generates a magnetic field in its surrounding space. This field consists of concentric circular lines of force centered on the wire, the direction of which is determined by the right-hand thumb rule. The deflection occurs because the magnetic field produced by the current interacts with the magnetic field of the compass needle. Since the deflection is a direct consequence of the existence of this current-induced magnetic field, Statement II correctly explains Statement I.