Explanation:

Both statements are correct.

• Auroras are bright and colourful lights, formed due to an active interaction in space between charged solar winds and the Earth’s magnetosphere. 

• They occur when violent solar events eject charged particles into space, which become trapped in Earth's magnetic field and interact with atmospheric atoms, ultimately resulting in geomagnetic storms and the creation of aurora.

• In the Northern Hemisphere, the phenomenon is called the northern lights (aurora borealis), while in the Southern Hemisphere, it's called the southern lights (aurora australis). 

Hence option 3rd is correct.