The correct option is
B Statement 1 is incorrect and statement 2 is correct
A natural process in which elements are continuously cycled in various forms between different compartments of the environment like air, water, soil and organisms are called the natural cycle (nutrient cycle). Examples include the carbon, nitrogen, phosphorus and the water cycle.
Human activities can alter all the natural cycles on the planet Earth. Environmental disturbance due to the cutting down of trees, mining activities and illegal constructions across the globe are acts of humans that disturbs the balance of the environment.
The environment and the atmosphere is facing severe climatic changes like the disturbance of the water cycle or hydrologic cycle (the continuous movement of water within the Earth and atmosphere..
Deforestation accompanied with reduced humidity (the amount of water vapour in the atmosphere), leads to the absence of transpiration. This reduces the precipitation (any liquid or frozen water that forms in the atmosphere and falls back to the Earth like snow, rain etc.). The water content in the soil or groundwater levels also decline due to the above reason. Hence statement 2 is correct.
The water cycle is already under threat due to dam constructions and pollution also. Irregularities in rainfall and frequent droughts are some of the problems due to disturbances in the water-cycle.
Forests absorb atmospheric carbon dioxide during photosynthesis. Therefore, they serve as a carbon sink. The gaseous carbon dioxide lingers in the atmosphere due to deforestation, which contributes towards increased carbon dioxide emissions. This affects the carbon cycle. Hence statement 1 is incorrect.
![](https://df0b18phdhzpx.cloudfront.net/ckeditor_assets/pictures/1397681/original_Deforestation_-_CO2.png)
Figure : Effects of deforestation
Trees bind their roots to the soil, thereby holding the soil. The litter generated by the plant is decomposed by decomposers adding nutrients and fertility to soil. In the absence of trees, the soil becomes exposed and this leads to soil erosion and death of microbes. Nutrient cycling in these areas are hence affected. The deforested areas experience extremely arid climates leading to desertification and droughts.
![](https://df0b18phdhzpx.cloudfront.net/ckeditor_assets/pictures/1397690/original_effects_deforestation.png)
Figure : Consequences of deforestation