Statement I is correct: The bacterium Bacillus thuringiensis creates protein crystals when it grows. These crystals have a toxic protein that can kill insects. However, this toxin does not kill the bacterium itself because it remains in a safe, sleeping form while inside the cell.

Statement II is incorrect: The statement says that the Bt toxin protein exists as an active protoxin. This is a trick word! It actually exists as an inactive protoxin. It only wakes up and becomes active later when an insect eats it, thanks to the alkaline liquid inside the insect's gut.

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