Final answer:
Crossing-over occurs during prophase I of meiosis I and allows for the exchange of genetic material between homologous chromosomes, resulting in increased genetic diversity.
Step-by-step explanation:
Crossing-over occurs during prophase I of meiosis I, not prophase II. It is the exchange of genetic material between non-sister chromatids of homologous chromosomes. This process creates new combinations of genes on each chromosome, resulting in increased genetic diversity.