The correct answer is C. I only.
When butter melts, it undergoes a physical change. The butter changes from a solid to a liquid due to the heat, but it does not create a new substance; it remains butter (just in a different state). Therefore:
- I. It is a physical change. - True
- II. It makes a new substance. - False
- III. It is a chemical change. - False
Thus, only statement I is true.