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Q. Statement I The applied voltage (in forward bias of a $p-n$ junction) mostly drops across the depletion region and the voltage drop across the $p$-side and $n$-side of the junction is negligible.
Statement II Resistance of depletion region is large compared to resistance of $n$ or $p$-side.

Semiconductor Electronics: Materials Devices and Simple Circuits

Solution:

As resistance of depletion region is large, potential drop occurs mainly in depletion region.