The correct answer is A. I only.
Here's the rationale:
I. It is a physical change. - True. When paper gets wet, it undergoes a physical change. The water saturates the paper, altering its physical state and properties (like texture and flexibility) but not its chemical composition.
II. It makes a new substance. - False. The process of wetting the paper does not result in a new substance being formed; the paper remains paper, and the water remains water.
III. It is a chemical change. - False. A chemical change involves a transformation that produces new substances. Soaking paper in water does not involve such a transformation.
Thus, only statement I is true.