Read the following statements: I. When a red litmus paper is dipped into reaction mixture of a saponification reaction, it turns blue and the reaction is exothermic. II. When a blue litmus paper is dipped into reaction mixture of a saponification reaction, its colour does not change and the reaction is exothermic. III. When a red litmus paper is dipped into reaction mixture of a saponification reaction, its colour does not change and the reaction is endothermic. IV. When a blue litmus paper is dipped into reaction mixture of a saponification reaction, its colour does not change and the reaction is endothermic. Which of the above statements are correct:

Saponification is the alkaline hydrolysis of fats or oils using a strong base like sodium hydroxide ($NaOH$) to produce soap and glycerol.

• Nature of the reaction mixture: Because a strong base ($NaOH$) is used as a reactant, and soap itself is a salt of a strong base and weak fatty acid, the reaction mixture is highly basic (alkaline). Therefore, it turns red litmus paper blue (Statement I is correct) and has no effect on blue litmus paper (Statement II is correct).
• Thermal nature of the reaction: Saponification is an exothermic chemical reaction, meaning it releases heat energy to the surroundings, making the reaction mixture warm.

Since Statements I and II are correct, Option A is the correct choice.