The statement that is not a direct observation showing that gravity causes objects to fall downward toward the center of the Earth is:
A ping-pong ball that is dropped continues to bounce up and down in place until coming to rest.
This scenario describes the behavior of the ping-pong ball after it has been dropped, where it bounces, but it does not specifically illustrate the effect of gravity causing it to fall downward initially. The other two scenarios (the drop of water from a faucet and the apple falling from a tree) directly show the effect of gravity pulling objects downward.