Explanation:

- Statement 1: Retail trade is indeed considered a part of the tertiary activities. The tertiary sector includes services like retail, hospitality, banking, and healthcare.

- Statement 2: Research and Development (R&D) is classified under quaternary activities, which encompass knowledge-based activities such as IT, education, and R&D.

- Both statements correctly categorize the service sector activities into their respective classifications, acknowledging tertiary and quaternary distinctions.

- Correct Answer: Both 1 and 2