Let's analyze each statement separately to determine its validity:

Statement I: The Indian Government has set up GEAC, which will make decisions regarding the validity of GM research.

The Genetic Engineering Appraisal Committee (GEAC) is indeed an authority established by the Indian Government under the Ministry of Environment, Forest and Climate Change. Its role is to evaluate and make decisions regarding the research, development, and commercialization of genetically modified (GM) organisms and products. Therefore, Statement I is true.

Statement II: Biopiracy is the term used to refer to the use of bio-resources by native people.

Biopiracy refers to the unethical or unauthorized exploitation of biological resources, typically involving indigenous knowledge, by entities (often corporations or researchers from developed countries) without fair compensation to the native people or countries from which these resources originate. Therefore, this statement is incorrect as it should mention the exploitation by external entities rather than the use by native people themselves. Therefore, Statement II is false.

Based on the analysis, the correct answer is:

Option A: Statement I is true but Statement II is false