Step 1: Understanding the Concept:
Transpiration is the loss of water vapor from the aerial parts of a plant, primarily through the stomata.
Although sometimes described as a "necessary evil," transpiration plays several essential physiological roles in plants.
Step 2: Detailed Explanation:
Let us evaluate each option:
(A) Flow of mineral nutrients and water through xylem:
This is a correct function of transpiration.
The evaporation of water from leaves creates a negative hydrostatic pressure (transpirational pull), which draws water and dissolved mineral ions upward from roots to leaves through the xylem.
(B) Diffusion of carbon dioxide from the air for photosynthesis:
This is a correct consequence.
To allow transpiration to occur, stomata must open.
Open stomata provide a pathway for the outward diffusion of water vapor and the simultaneous inward diffusion of atmospheric carbon dioxide ($CO_2$) required for photosynthesis.
(C) Change in osmotic pressure of cells:
This is correct.
The loss of water during transpiration alters the solute concentration and turgor pressure of cells, directly affecting osmotic pressure and maintaining cell turgidity.
(D) Reduction of cooling effect on the leaf surface:
This is incorrect.
The evaporation of water during transpiration absorbs latent heat from the leaf tissue, which lowers the leaf temperature by several degrees (evaporative cooling).
Therefore, transpiration promotes or causes a cooling effect, rather than reducing it.
Step 3: Final Answer:
The statement "Reduction of cooling effect on the leaf surface" is incorrect with respect to transpiration.
Thus, the correct option is (D).