Final answer:
The statement is true; lateral inhibition is a process in neurogenesis used by both vertebrates and Drosophila to ensure proper nervous system development.
Step-by-step explanation:
The statement 'Neurogenesis in vertebrates and Drosophila both use lateral inhibition' is True. Lateral inhibition is a process used by developing neurons in both vertebrates and invertebrates, such as the fruit fly Drosophila, to regulate the differentiation of equivalent cells to acquire different fates. During neurogenesis, it helps establish neural patterns and ensures that not all cells adopt a neural fate, allowing for the formation of a properly functioning nervous system with a diverse array of cell types.