A:  The answer to your question is “both.” Man does evolve, but his evolution is the act of God’s creation—tempered by time and space. God could have created us complete and perfect as he has done with other of his creatures, but in the case of human beings, his creation is an unfoldment and a gradual evolution which is even yet proceeding. From The Urantia Book:

(49:1.1) The universes of time and space are gradual in development; the progression of life—terrestrial or celestial—is neither arbitrary nor magical. Cosmic evolution may not always be understandable (predictable), but it is strictly nonaccidental.

The biologic unit of material life is the protoplasmic cell, the communal association of chemical, electrical, and other basic energies. The chemical formulas differ in each system, and the technique of living cell reproduction is slightly different in each local universe, but the Life Carriers are always the living catalyzers who initiate the primordial reactions of material life; they are the instigators of the energy circuits of living matter.

All the worlds of a local system disclose unmistakable physical kinship; nevertheless, each planet has its own scale of life, no two worlds being exactly alike in plant and animal endowment. These planetary variations in the system life types result from the decisions of the Life Carriers. But these beings are neither capricious nor whimsical; the universes are conducted in accordance with law and order. The laws of Nebadon are the divine mandates of Salvington, and the evolutionary order of life in Satania is in consonance with the evolutionary pattern of Nebadon.

Evolution is the rule of human development, but the process itself varies greatly on different worlds. Life is sometimes initiated in one center, sometimes in three, as it was on Urantia. On the atmospheric worlds it usually has a marine origin, but not always; much depends on the physical status of a planet. The Life Carriers have great latitude in their function of life initiation.

In the development of planetary life the vegetable form always precedes the animal and is quite fully developed before the animal patterns differentiate. All animal types are developed from the basic patterns of the preceding vegetable kingdom of living things; they are not separately organized.

The early stages of life evolution are not altogether in conformity with your present-day views. Mortal man is not an evolutionary accident. There is a precise system, a universal law, which determines the unfolding of the planetary life plan on the spheres of space. Time and the production of large numbers of a species are not the controlling influences. Mice reproduce much more rapidly than elephants, yet elephants evolve more rapidly than mice.

The process of planetary evolution is orderly and controlled. The development of higher organisms from lower groupings of life is not accidental. Sometimes evolutionary progress is temporarily delayed by the destruction of certain favorable lines of life plasm carried in a selected species. It often requires ages upon ages to recoup the damage occasioned by the loss of a single superior strain of human heredity. These selected and superior strains of living protoplasm should be jealously and intelligently guarded when once they make their appearance. And on most of the inhabited worlds these superior potentials of life are valued much more highly than on Urantia.

(32:3.10) The fact of animal evolutionary origin does not attach stigma to any personality in the sight of the universe as that is the exclusive method of producing one of the two basic types of finite intelligent will creatures. When the heights of perfection and eternity are attained, all the more honor to those who began at the bottom and joyfully climbed the ladder of life, round by round, and who, when they do reach the heights of glory, will have gained a personal experience which embodies an actual knowledge of every phase of life from the bottom to the top.

For a more complete picture, please see our topical study on Evolution which contains many interesting links to The Urantia Book which will expand and deepen your understanding of evolution.