The Texture Sheet Animation module allows animating a selection of sprites on a separate Texture file.

The statement is false because the Texture Sheet Animation module in Unity is designed to animate a selection of sprites within a single texture atlas or sprite sheet rather than a separate texture file. This module allows artists to use multiple frames of sprites contained in one texture file to create animations efficiently.

With this approach, Unity can use a texture atlas to minimize the number of draw calls, which helps optimize performance. By utilizing the Texture Sheet Animation, developers can manipulate UVs (texture coordinates) to display the appropriate sprite frames from the atlas, effectively creating smooth animations by cycling through the various sprites in a single file.

In contrast, the concept of animating sprites from separate texture files wouldn’t utilize the Texture Sheet Animation module effectively, as it is specifically aimed at managing and animating sprites contained within a unified texture. This is critical for enhancing performance in 2D games by batching the sprites together.