The correct option is D Both statements are correct. Statement 2 is the correct explanation for statement 1.
In a reaction between a metal and the salt solution of another metal, the more reactive metal can displace the less reactive metal from its salt in solution or molten form.
In the above reaction, metal A is more reactive than metal B.
More reactive metals are above in the reactivity series. So, the more reactive metal replaces the less reactive metal.