Final answer:
The true statement about the water energy in the described scenario is that it is converted into electrical energy using a water wheel and a generator.
Step-by-step explanation:
The scenario described involves the conversion of energy from one form to another at a hydroelectric power station. Initially, the water energy is in the form of potential energy due to the water being at a higher elevation. As the water descends the steep hill, its potential energy is transformed into kinetic energy. This kinetic energy is then used to turn the water wheel, which in turn spins a generator, resulting in the conversion of kinetic energy into electrical energy. Therefore, the statement that is true about the water energy in this scenario is: (A) It is converted into electrical energy. Additionally, there may be some energy loss in the form of heat due to inefficiencies in the transfer process.