Correct Answer: Statement 1 is false, but statement 2 is true.

Solution : The correct option is (c) Statement 1 is false, but statement 2 is true.

Statement 1 suggests that human capital formation has no impact on poverty reduction. This statement is false. Human capital formation, which involves investments in education, skills development, and healthcare, plays a crucial role in poverty reduction. By equipping individuals with knowledge, skills, and abilities, human capital formation enhances their employability and income-earning potential. It improves their chances of accessing better job opportunities, higher wages, and economic mobility, thus reducing poverty.

Statement 2 correctly states that human capital formation plays a crucial role in poverty reduction by improving employment opportunities and income levels. It enables individuals to break the cycle of poverty by acquiring the necessary skills and knowledge to secure productive and well-paying jobs. Additionally, human capital formation can contribute to the overall development of communities and societies, leading to improved social indicators and reduced poverty rates.

Therefore, statement 1 is false, but statement 2 is true.