The correct option is
A Statement-1 is true, statement-2 is true; statement -2 is a correct explanation for statement-1.
The Ellingham diagram for oxides shows several important features: (a)The graph for metal oxide all slope upwards, because the free energy change increases with an increase of temperature as discussed above.
(b)The free energy changes all follows a straight line unless the materials metal or vaporize.
(c)When the temperature is raised, a point will be reached where the graph crosses the ΔG=0 line.
Below this temperature the free energy of formation of the oxide is negative, so the oxide is stable. Above this temperature the free of formation of the oxide is positive, and the oxide becomes unstable, and should decompose into the metal and dioxygen.
(d)Any metal will reduce the oxide of other metals which lie above it in the Ellingham diagram because the free energy will become more negative by an amount equal to the different between the two graphs at that particular temperature.
(e) Al metal can reduce the oxide of metal placed above in the diagram. Due to more negative free energy Al can reduce Zn but not Mg.
From figure it can be seen that,
as ΔG is negative below 710 C so process is spontaneous and Fe2O3 can be reduced by CO below this.