Final answer:
User-Defined Exception Classes can indeed indirectly extend the system-defined Exception class, allowing custom exceptions a hierarchical relationship with system-defined exceptions.
Step-by-step explanation:
The statement that User-Defined Exception Classes can indirectly extend the system-defined Exception class is true. When you create a custom exception in most programming languages like Java or Python, you can extend a system-defined exception class, such as Exception in Java, either directly by extending the Exception class itself or indirectly by extending another user-defined class that inherits from the Exception class. This forms a class hierarchy where all custom exceptions ultimately inherit the properties and behaviors of the predefined Exception class.