Step 1: Understanding the Concept:
Functional interior space planning balances furniture scale, circulation pathways, and aesthetic harmony without overcrowding.
Step 2: Detailed Explanation:
1. Statement I: Proper home furnishing is determined not by sheer volume, but by the thoughtful selection, functional appropriateness, and harmonious spatial arrangement of furniture tailored to family activities. Hence, Statement I is correct.
2. Statement II: Overcrowding rooms with an excessive quantity of furniture obstructs natural walking circulation pathways, creates visual clutter, increases cleaning fatigue, and reduces functionality. Hence, Statement II is incorrect.
Step 3: Final Answer:
Hence, Statement I is correct but Statement II is incorrect, corresponding to option (C).