The correct option is C Statement-1 is true, Statement-2 is false
The potential difference V across the terminals is not equal to the emf E, but will be smaller because of the voltage drop within the device due to its internal resistance r.If I is current through the circuit then,
V=E−Ir
The resistance offered by medium in between plates of battery (electrolytes and electrodes of the cell) to the flow of current within the battery is called internal resistance of the battery. For an ideal cell r=0 , but real batteries or sources of emf always has same finite internal resistance.