True or false gymnosperms produce their seeds in fruit

False.

Explanation:

From biology, we can know about the definition of gymnosperms. In the description of gymnosperms, we can see that gymnosperms are those type of plants which do not produce any ovary. It is known that the ovary turns into a fruit. As gymnosperms do not have any ovary, they can't produce their seeds inside of a fruit. In the case of other plants except for gymnosperms, the seeds are produced from the developed ovules. But in the case of gymnosperms, the ovules are located directly on the exterior of the flower.

So, the statement is false.