Option 1 states that both statements are true and that Statement II is the correct explanation for Statement I. Let`s examine each statement separately to confirm their accuracy.

Statement I: Red blood cells burst when placed in water.

This statement is true. When red blood cells are placed in a hypotonic solution like water, water molecules rush into the cells through osmosis. The influx of water causes the cells to swell and eventually burst, a process known as hemolysis.

Statement II: Due to the phenomenon of osmosis, water enters into red blood cells.

This statement is also true. Osmosis is the process by which water molecules move from an area of lower solute concentration to an area of higher solute concentration, across a semipermeable membrane. In the case of red blood cells in water, the water outside the cells has a lower concentration of solutes compared to the cytoplasm inside the cells. As a result, water enters the cells through osmosis.

Therefore, option 1 is correct. Both statements are true, and Statement II correctly explains why red blood cells burst when placed in water.