Step 1: Understanding the Concept:
Paraneoplastic hyperestrogenism in canine testicular neoplasms: neoplastic Sertoli cells produce excessive estrogens causing feminization syndrome, gynecomastia, and bilateral symmetrical alopecia.
Step 2: Detailed Explanation:
1. Statement I: In male dogs (particularly cryptorchids), Sertoli Cell Tumours (SCT) frequently synthesize and secrete high amounts of estrogens (estradiol), causing Male Feminizing Syndrome (bilateral symmetrical non-pruritic endocrine alopecia, hyperpigmentation, pendulous prepuce, attractive to other males, and penile/testicular atrophy). Hence, Statement I is correct.
2. Statement II: Gynaecomastia (enlargement of mammary glands with nipple elongation and galactorrhea) is a direct clinical component of this feminizing syndrome caused by hyperestrogenism from the Sertoli cell tumour, NOT from Leydig (interstitial) cell tumors (which produce androgens or are hormonally silent). Hence, Statement II is false.
Step 3: Final Answer:
Thus, Statement I is correct but Statement II is false, corresponding to option (C).