Final answer:
Native Americans did not control the production of the early tobacco industry; that distinction belongs to the colonists in the Chesapeake, namely Virginia, who cultivated tobacco very successfully.
Step-by-step explanation:
All of the given statements regarding the early tobacco industry are true, except for statement number 2: Native Americans controlled the production of the early industry. Instead, it was the colonists in the Chesapeake region, particularly in Virginia, who found success and wealth through tobacco cultivation. Tobacco grew exceptionally well in the Chesapeake soil and climate, gaining popularity in Europe as a result of its introduction by figures such as Sir Walter Raleigh and John Rolfe's innovation in tobacco strains.
King James I, despite creating a royal monopoly on tobacco imports and thus profiting from its trade, also publicly denounced its use, describing tobacco as a "noxious weed" harmful to health. However, this did not hinder the crop from becoming a phenomenal success in England and Europe.
Despite hardships, the introduction of tobacco cultivation transformed the economic stability of the Chesapeake colonies, with Virginia and later Maryland exporting substantial quantities of tobacco back to England, marking the beginning of a thriving industry.