Correct Answer: Both statement 1 and statement 2 are true, and statement 2 is the correct explanation of statement 1 .

Solution : The correct option is (A) Both statement 1 and statement 2 are true, and statement 2 is the correct explanation of statement 1 .

Statement 1 is true: The sustainable management of forests is indeed crucial for maintaining biodiversity, mitigating climate change, and providing livelihoods for local communities. Forests are home to a significant portion of the Earth's biodiversity, and their conservation is essential for preserving various species and ecosystems. Forests also act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere, thus helping to mitigate climate change. Additionally, forests provide valuable resources and livelihood opportunities for local communities, including timber, non-timber forest products, and ecotourism.

Statement 2 is the correct explanation of statement 1. Deforestation and forest degradation do result in the loss of habitat, increased greenhouse gas emissions, and reduced ecosystem services. When forests are cleared or degraded, the habitat for numerous plant and animal species is destroyed, leading to biodiversity loss. The cutting down of trees also releases carbon dioxide stored in the trees and disrupts the natural carbon cycle, contributing to greenhouse gas emissions and climate change. Furthermore, forests provide essential ecosystem services such as regulating water flow, preventing soil erosion, and maintaining air quality, which are compromised when deforestation occurs.

Therefore, both statements are true, and statement 2 provides the correct explanation for statement 1 .