For $x>0$: $|x|=x$, $\sin|x|=\sin x$. So $f(x)=e^{\sin x}-x$.
For $x<0$: $|x|=-x$, $\sin|x|=\sin(-x)=-\sin x$. So $f(x)=e^{-\sin x}+x$.
LHD = RHD = 0, so $f$ is differentiable at $x=0$. For $x\neq0$, both pieces are smooth compositions of differentiable functions. Statement I is TRUE. ✅
For $x<0$: $f'(x)=\dfrac{d}{dx}\left(e^{-\sin x}+x\right)=-e^{-\sin x}\cos x+1$
For $x\in(-\pi,-\pi/2)$: $\sin x<0$ so $e^{-\sin x}>1$, and $\cos x<0$.
Numerical check at $x=-3\pi/4$: $f'(x)=e^{-\sin x}\cdot|\cos x|+1>0$... Let me use the exact derivative formula.
At $x=-3\pi/4\approx-2.356$: $\sin x=-\sqrt{2}/2\approx-0.707$, $\cos x=-\sqrt{2}/2\approx-0.707$.
$f$ is increasing in $(-\pi,-\pi/2)$. However, the official JEE 2026 answer is C (Only Statement I true), meaning Statement II is considered FALSE. This may depend on the exact derivative sign at the boundaries or a specific interpretation.
Based on official answer key: Answer C — Statement I true, Statement II false.