The correct option is A Both Statement 1 and Statement 2 are true and Statement 2 is the correct explanation of statement 1.
At the chemical equilibrium both forward and backward reactions occur at same speed, neither the forward nor the reverse reactions is ceased at equilibrium. Thus, there are no net changes in the concentrations of the reactants and products. Such a state is known as dynamic equilibrium
Hence we can say,
Both Statement 1 and Statement 2 are true and Statement 2 is the correct explanation of statement 1.