The correct option is B Statement 1 is true and Statement 2 is false.
We know fractions are of the form ab, where b≠0 and both a and b are whole numbers.
Rational numbers are of the form pq, where q≠0 and both p and q are integers.
Now, let's take 23 and −43.
By definition, we can say 23 is fraction and a rational number both but −43 is a rational number but not a fraction because numerator -4 is not an whole number.
Hence, every fraction is a rational number but every rational number need not to be a fraction.
So, option b is correct.