- Statement I: A compass needle is a small magnet. It aligns itself with the local magnetic field. If a compass needle is placed near a current- carrying wire, it will experience a force due to the magnetic field produced by the current, causing it to deflect. This statement is true. - Statement II: A current-carrying wire produces a magnetic field around it. This phenomenon was discovered by Hans Christian Ørsted and is a fundamental principle of electromagnetism, described by laws like Ampère's law. This statement is true. - Statement II provides the reason why the compass needle in Statement I gets deflected. The magnetic field created by the current-carrying wire (Statement II) is what causes the deflection of the compass needle (Statement I).