The statement that "Infrared waves are largely absorbed by water vapour that is concentrated in the lower atmosphere" is correct because water vapour is a potent greenhouse gas, playing a crucial role in Earth's radiative balance. As infrared radiation emitted by the Earth's surface rises, its interaction with water vapour leads to absorption and re-emission of heat, which helps to maintain atmospheric temperatures and supports life by enhancing the greenhouse effect. This concept is fundamental in understanding climate dynamics and the overall energy distribution in the atmosphere, as elaborated in standard references like NCERT textbooks on environmental science and geography.