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Q. Statement I: According to law of conservation of mechanical energy change in potential energy is equal and negative to the change in kinetic energy
Statement II: Mechanical energy is not a conserved quantity.

Work, Energy and Power

Solution:

For conservative forces the sum of kinetic and potential energies at any point remains constant throughout the motion.
This is known as law of conservation of mechanical energy.
According to this law, Kinetic energy + Potential energy = constant
or $\Delta K+\Delta U=0$ or $\Delta K=-\Delta U$