MOVING system will oscillate about the final steady position with a decreasing amplitude and will TAKE some time before it comes to rest.When the system moves rapidly but smoothly to its final steady position, the instrument is said to be critically damped.If the damping torque is more than what is required for CRITICAL damping, the instrument is said to be overdamped. In an overdamped instrument, the moving system moves slowly to its final steady state position in a lethargic fashion. Application:A permanent magnet moving coil instrument is always slightly under damped because the pointer of the PMMC instrument should overshoot a little beyond the steady-state position to GIVE the accurate reading.Therefore, both STATEMENT (I) and Statement (II) are individually true and Statement (II) is the correct explanation of Statement (I).