Given below are two statements. 
Statement I : To form tracheary elements, cells lose their protoplasm during differentiation.
Statement II : Intrafascicular cambium is an example of de-differentiation.

In light of the above statements, choose the correct answer from the options given below. 

The cells derived from apical meristems and cambium differentiate and mature to perform specific functions. This act leading to maturation is termed as  differentiation.

During differentiation, cells undergo few to major structural changes both in their cell walls and protoplasm. For example, to form a tracheary element, the cells would lose their protoplasm. They also develop very strong, elastic, lignocellulosic secondary cell walls, to carry water to long distances even under extreme tension, to form tracheary elements. Cells lose their protoplasm during differentiation.

 Intrafascicular cambium is not an example of dedifferentiation, as the cells are already in an active state of division.