Final answer:
The statement is false; incomplete dominance is characterized by a heterozygous phenotype that is intermediate between the two homozygous phenotypes, unlike the dilution gene in horses.
Step-by-step explanation:
The statement that the color dilution gene in horses is an example of incomplete dominance is false. Incomplete dominance is a form of inheritance where the heterozygote exhibits a phenotype that is intermediate between both homozygous phenotypes. For example, pink snapdragons result from the crossing of red-flowered (dominant) and white-flowered (recessive) snapdragons. In humans, incomplete dominance is seen with the genes for hair texture, where an offspring of a curly-haired and a straight-haired parent will have wavy hair. Furthermore, in cases like blood groups and certain flower and animal fur colors, where both alleles are expressed equally, the term codominance is used.