Statement-1: An atom of valency 2 can combine with 2 other atoms of valency 1.
Statement-2: The valency of an element is the measure of its combining power with other atoms, when it forms chemical compounds or molecules.
Both the statements are true and 2 is the right explanation of 1.
Both the statements are true and statement 2 is the correct explanation for statement 1. The valency of an element is defined as the combining capacity of an element, hence if the valency of an element is 2, it combines with an element of valency one.