Statement 1: Metal oxides are basic in nature.
Statement 2: Metal oxides neutralize the effect of acids and release water, similar to the reaction of a base with an acid.
Both statements are correct and statement 2 is the correct reason for statement 1.
Metal oxides react with acids to form salt and water, similar to the reaction of a base with an acid. Hence, metal oxides are basic in nature.
For example:
MgO+2HCl→MgCl2+H2O
Hence, statements 1 and 2 are correct and statement 2 is correct explanation of statement 1.