The correct statement that describes why the student is incorrect is: Energy is converted from other forms, not created.
Explanation:
The law of conservation of energy states that energy cannot be created or destroyed, it can only be converted from one form to another. In the case of an object falling through the air, its potential energy (due to its position) is being converted into kinetic energy (due to its motion). As the object falls, its potential energy decreases, while its kinetic energy increases. So, the energy gained by the object is not created out of nothing, but rather converted from its initial potential energy.
Therefore, the student's claim that the object falls and creates new energy is incorrect. The object is not generating additional energy, it is simply converting one form of energy into another.