Answer: The given statement is True.
Clouds are formed due to condensation of water vapors. Condensation can be described as a process of change of gaseous form of water (that is water vapor) into liquid form.
When sunlight strikes various aquatic bodies, water is heated up and it rises high in the atmosphere in the form of water vapors.
When these vapors meet a lower temperature in the atmosphere, they cool and the air loses its capacity to hold them.
Due to this, vapors condense and form clouds.
Thus, given statement is True.