Explanation:

- Statement 1: Before the advent of British rule, kings and nawabs often protected handicraft industries. These handcrafted goods were essential for trade and represented cultural heritage, which rulers were keen to preserve and promote.

- Statement 2: Handicraft industries were indeed a source of revenue for kings. These industries were part of a thriving economy. They contributed through trade taxes and other forms of revenue, enriching the treasuries of the rulers.

- Option 1: Both statements are correct. Handicraft industries were supported by rulers and contributed to their revenue.

- Option 2: Both statements are incorrect. This option is incorrect as both statements are indeed true.

- Option 3: Statement 1 is correct and statement 2 is incorrect. Not applicable since both statements are correct.

- Option 4: Statement 1 is incorrect and statement 2 is correct. This is not valid; as discussed, both statements are true.

Correct Answer: Option 1 - Both are correct