When primary aliphatic amines react with HNO2 then unstable diazonium salt, which result in the formation of alcohol and N2 gas.
And when primary aromatic amines react with HNO2 the diazonium salts formed are stable due to resonance stabilisation of the aromatic ring of aryl diazoniun salts.But these are stable only at 273-277 K, at higher temperatures they are unstable.
Hence, Statement I is correct but Statement II is incorrect.