During classification, species are distinguished, named and grouped into genera based on correlated characteristics.

Answer

### Step-by-Step Text Solution:

1. **Understanding Classification**: Classification in biology refers to the systematic arrangement of living organisms into groups based on shared characteristics. This process is known as taxonomy.

2. **Taxonomic Hierarchy**: The classification follows a hierarchical structure. The major ranks in this hierarchy include:
- Kingdom
- Phylum
- Class
- Order
- Family
- Genus
- Species

3. **Distinguishing Species**: Species are the basic units of classification. They are distinguished based on specific characteristics that they share with one another. These characteristics can be morphological (structural), physiological (functional), or genetic.

4. **Naming Species**: Each species is given a unique scientific name, which consists of two parts: the genus name and the species identifier. For example, in the name *Homo sapiens*, *Homo* is the genus and *sapiens* is the species.

5. **Grouping into Genera**: Species that share significant similarities are grouped together into a genus. A genus can contain one or more species. This grouping helps in understanding the relationships between different organisms.

6. **Conclusion**: The statement in the question accurately reflects the process of classification, where species are distinguished, named, and grouped into genera based on correlated characteristics.