Explanation:

The rectangle is of dimensions 20 cm × 8 cm.
Statement I: You may think that as the area of rectangle is not a perfect square, it is not possible to cut it into exactly 4 square sheets. But there’s a catch. The statement never says that the 4 squares have to be equal in area. We can do so as follows:

Statement II: You may think that we can cut the rectangle into 8 triangles of equal area (as shown below), but not in 10.

But again, this can be done. It has been shown below:

Hence, both statements 1 and 2 are correct.