Step 3: Evaluate the options provided in the question. The first option, 'Chloroplasts are found only in the epidermal cells of the leaf,' is incorrect because chloroplasts are primarily found in mesophyll cells, not epidermal cells. The third option, 'Chloroplasts are responsible for water transport in the leaf,' is incorrect because water transport is managed by vascular tissues like xylem. The fourth option, 'Chloroplasts store genetic material for the entire plant,' is incorrect because chloroplasts only contain their own DNA, not the genetic material for the entire plant.