Explanation:

 73rd & 74th Constitutional Amendment Acts

• The Panchayats and Urban Local Bodies, respectively, are provided with a five-year term of office at every level.
• Fresh elections have to be completed before the expiry of its duration of 5 years.
• It can be dissolved before the completion of its term.
• In case of dissolution,elections have to be conducted before the expiry of a period of six months from the date of its dissolution.
• However, if the remainder of the period for which the dissolved Panchayat would have continued is less than six months,it shall not be necessary to hold any election under this clause for constituting the Panchayat for such period.
• A Panchayat constituted upon the dissolution of a Panchayat before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Panchayat would have continued.

Hence both statements are correct.