The properties of a diamagnetic material are as follows:
The susceptibility has a low negative value.
Susceptibility is independent of temperature.
The relative permeability is slightly less than one.
When placed in a non-uniform magnetic field they have a tendency to move away from the field.
When suspended freely in a uniform magnetic field, they set themselves perpendicular to the direction of the magnetic field.
Hence, Statement I is false, but statement II is true.