The correct option is C Both statement 1 and statement 2 are correct
Hooke's law is defined within the proportional limit. So, the object returns to its original shape when the force is removed i.e the deformation is elastic for small deformations.
Beyond elastic limit, any deformation caused is permanent (plastic) and it cannot be restored once the force is removed. So, it is region of plasticity.
∴ Both statement 1 and statement 2 are correct