The correct option is A Statement 1 is true and statement 2 is false.
Metals on reaction with oxygen produce metal oxide. Being a metal, magnesium burns in air with a dazzling white flame to form magnesium oxide.
Metals react with water to form metal hydroxide and hydrogen gas.
For example: Sodium reacts with cold water to form sodium hydroxide and hydrogen gas. This can be represented as:
Sodium+Water→Sodium hydroxide+Hydrogen gas
Hence, only statement 1 is correct.