Which of the Following Statements Is (Are) Correct

Multiple Choice

Which of the following statements is (are) correct?
I. Unsystematic risk can be eliminated through diversification.
II. Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms, like inflation, political events, etc.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.