The correct option is A Statement 1 and 2 are correct.
Fossils are the traces or the dead remains of the organisms that existed in the past. Studying fossils can help us to ascertain how the organism underwent evolution, its ancestors and related organisms. By techniques such as carbon dating, one can know during which timescale the fossilised organism existed. Although fossils represent dead remains of the organism, it does not always mean that the organism in question has become extinct. Fossils of organisms that can even be found today means that the organisms have been on the earth since a very long time. Various fossils of mosquitoes, cockroaches, frogs marine organisms etc. are being discovered even though they are not extinct.