The correct option is A Statement - 1 is True, Statement - 2 is True, Statement - 2 is a correct explanation for Statement - 1
Equal chords are equi-distant from the centre of the circle. Also, a perpendicular from the centre of the circle to the chord is a perpendicular bisector of the chord. Hence, as the mid-points are equi-distant from the center of the circle, the locus of the middle points is a circle with center at the center of the original circle. Hence, statement 1 is true, statement 2 is true and statement 2 is the correct explanation of statement 1.