Option 1 states that both statements are individually true and that Statement II is the correct explanation of Statement I. To analyze this, let`s examine each statement.

Statement I states that phytoplankton produce most of the organic carbon in the ocean. This is generally true. Phytoplankton are microscopic marine plants that carry out photosynthesis, converting sunlight and nutrients into organic matter. They are the primary producers in the ocean, responsible for producing a significant portion of the organic carbon.

Statement II states that algae are produced in the cold water biome. This is not true. Algae can be found in various aquatic environments, including freshwater and marine ecosystems. While some species of algae may thrive in cold water environments, algae are not exclusively produced in cold water biomes.

Based on this analysis, Option 1 is incorrect because Statement II is not the correct explanation of Statement I. Phytoplankton, which include various species of algae, are responsible for producing most of the organic carbon in the ocean, regardless of the water temperature. Therefore, the correct answer is Option 2 where both statements are individually true, but Statement II is not the correct explanation of Statement I.