I: The reaction of hydrogen with oxygen to form water is an exothermic reaction. II: Water molecules have polar covalent bonds.
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Solution
The reaction of hydrogen with oxygen to form water is exothermic because it liberates more energy than it absorbs. In reactions, there is usually bonds breaking which is endothermic and bond being made which is exothermic. The formation of covalent bond is highly exothermic. Since water molecules has covalent bonds (polar), formation of water is exothermic.
Hence both statements are correct and statement II is correct explanation of statement I