The correct options are
B Statement 2 is not the correct reasoning for statement 1.
C Both the statements are true.
The propagation of a light ray in a medium depends on the optical density of the medium. The greater the optical density, the slower the light travels in the medium. Also, when light travels from a rarer to a denser medium, it bends away from the normal at the interface of the two media. The statement 2 is true.
Oil (1.4) has a greater refractive index than that of water (1.33). So, light travels slower through oil than through water. Hence, the statement 1 is also correct.
However, the statement 2 is not the reason behind the statement 1. Instead, both the statements have a common reasoning that light travels slower in a medium of greater optical density.