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The statement that obstacle avoidance in Unity is solely for static obstacles is false. In Unity, obstacle avoidance is designed to handle both static and dynamic obstacles.

Static obstacles refer to fixed objects that do not move, such as walls or terrain features that remain in place. However, dynamic obstacles are objects that can move around during gameplay, such as other characters or moving platforms. Unity's pathfinding systems, particularly using NavMesh, allow agents to navigate both types of obstacles. The NavMesh system enables characters or agents to dynamically adjust their paths to avoid moving obstacles, ensuring a more realistic and fluid interaction within the game environment.

This capability is essential for creating engaging gameplay experiences where characters can intelligently navigate around other characters and objects, enhancing the player's enjoyment and the overall game dynamics.