The correct option is C Both the statements are true.
During the time of lightning, the air currents move upward while the water droplets move downward. These vigorous movements cause separation of charges.
Also, the positive charges collect near the upper edges of the clouds and the negative charges accumulate near the lower edges.
There is accumulation of positive charges near the ground also. When the magnitude of the accumulated charges becomes very large, the air which is normally a poor conductor of electricity, is no longer able to resist their flow. Negative and positive charges meet, producing streaks of bright light and sound.
Therefore, both the given statements are true.