The correct statement about the reaction that forms water is:
The reaction is exothermic because the total energy released by the products is greater than the energy absorbed in the reactants.
When hydrogen and oxygen react to form water, energy is released in the form of heat, which is characteristic of an exothermic reaction. This means that the total energy released during the formation of water is greater than the energy required to break the bonds in the reactants (hydrogen and oxygen).