The correct option is C Both statement 1 and 2 are true.
The Tangs built two capital cities, Boyang and Chang-on. To counter the landowning aristocratic class, officials were appointed, who were scholarly people. They spent years studying the philosophies of Confucius, China’s greatest teacher, philosopher, and political theorist. To keep the power of the aristocrats at bay, the land was divided into small peasant holdings. This way, the agricultural surplus was devised to go to the state as taxes, instead of going to the Aristocrats as rent.