Final answer:
The statement is false; a majority of Earth's freshwater is stored in polar ice caps, and only around 1.2% of all freshwater is available as surface water for use by living organisms.
Step-by-step explanation:
The statement that a small fraction of fresh water is frozen in polar ice caps is false. In reality, a significant portion of Earth's freshwater is stored in polar ice caps. Specifically, only 2.5% of water on Earth is fresh water, and the majority of this fresh water is not easily accessible because it is locked up in ice sheets, icebergs, and glaciers. Accordingly, more than 70 percent of the Earth's fresh water is in the form of ice caps at the North and South Poles, making it inaccessible for immediate human use.
When considering water distribution, it's important to remember that most of Earth's water is salt water in the oceans, comprising about 97% of all water. The remaining 3% is freshwater, but this includes the vast amount that is frozen. It is only a little more than 1.2% of all fresh water that is in the form of surface water, such as lakes and rivers, which can be utilized by humans and wildlife.