Explanation:

? Appointment of Governor:
o The governor is neither directly elected by the people nor indirectly elected by a specially constituted electoral college as is the case with the president. He is appointed by the president by warrant under his hand and seal. In a way, he is a nominee of the Central government. But, as held by the Supreme Court in 1979, the office of governor of a state is not an employment under the Central government. It is an independent constitutional office and is not under the control of or subordinate to the Central government.
o The Constitution lays down only two qualifications for the appointment of a person as a governor.
o He should be a citizen of India.
o He should have completed the age of 35 years.
o Additionally, two conventions have also developed in this regard over the years.
o First, he should be an outsider, that is, he should not belong to the state where he is appointed so that he is free from the local politics.
Hence statement 1 is not correct.
o Second, while appointing the governor, the president is required to consult the chief minister of the state concerned, so that the smooth functioning of
the constitutional machinery in the state is ensured. However, both the conventions have been violated in some of the cases.
? Conditions of Governor’s Office:
?
o He should not be a member of either House of Parliament or a House of the state legislature. If any such person is appointed as governor, he is deemed to have vacated his seat in that House on the date on which he enters upon his office as the governor.
o He should not hold any other office of profit. 

o He is entitled without payment of rent to the use of his official residence (the Raj Bhavan).
o He is entitled to such emoluments, allowances, and privileges as may be determined by Parliament.
o When the same person is appointed as the governor of two or more states, the emoluments and allowances payable to him are shared by the states in such proportion as determined by the president.
o His emoluments and allowances cannot be diminished during his term of office.

o In 2018, the Parliament has increased the salary of the governor from 1.10 lakh to 3.50 lakh per month.
? Term of Governor's office:
o A governor holds office for a term of five years from the date on which he enters his office. However, this term of five years is subject to the pleasure of the President. Further, he can resign at any time by addressing a resignation letter to the President.
o The Supreme Court held that the pleasure of the President is not justifiable. The governor has no security of tenure and no fixed term of office. He may be removed by the President at any time.
o The Constitution does not lay down any grounds upon which a governor may be removed by the President.
o The President may transfer a Governor appointed to one state to another state for the rest of the term. Further, a Governor whose term has expired may be reappointed in the same state or any other state. Hence statement 2 is correct.
o A governor can hold office beyond his term of five years until his successor assumes charge. The underlying idea is that there must be a governor in the state and there cannot be an interregnum.
o The President can make such provision as he thinks fit for the discharge of the functions of the governor in any contingency not provided for in the Constitution, for example, the death of a sitting governor. Thus, the chief justice of the concerned state high court may be appointed temporarily to discharge the functions of the governor of that state.