Mark incorrect statement w.r.t. phylum Porifera.

In sponges, fertilisation is internal and development is indirect having a larval stage which is morphologically distinct from the adult. 

Sponges are primitive multicellular animals and have cellular level of organisation.

They have a water transport or canal system. Water enters through minute pores (ostia) in the body wall into a central cavity, spongocoel, from where it goes out through the osculum.

The pathway of water transport is helpful in food gathering, respiratory exchange and removal of waste.