Solution:
The above statement is true.Yes, the gravity separation method using a separating funnel can be used to separate the mixture of oil and water. Oil and water will form the two separate layers. Lighter one will form the upper layer and the heavier one will form the lower layer. When the stop cork of the funnel will open then water will come out and again second time when the stop cork will be opened then oil will come out and hence both will be separated.