Explanation:

Statement 1 is correct; The basic unit of agricultural  society was the village, inhabited by peasants who performed the manifold seasonal tasks that made up agricultural production throughout the year – tilling the soil, sowing seeds, harvesting the crop when it was ripe.

• During the sixteenth and seventeenth centuries, about 85 per cent of the population of India lived in its villages. Both peasants and landed elites were involved in agricultural production and claimed rights to a share of the produce.
• This created relationships of cooperation, competition and conflict among them. The sum of  these agrarian relationships made up rural society. At the same time agencies from outside also entered into the rural world.
• Most important among these was the Mughal state, which derived the bulk of its income from agricultural production. Many crops were cash crops that expanded India's external trade.

Statement 2 is correct; Along with Agricultural activities, the Village peasants were also artisans – potters, blacksmiths, carpenters, barbers, even goldsmiths – provided specialised services in return for which they were compensated by villagers by a variety of means.

• The most common way of doing so was by giving them a share of the harvest, or an allotment of land, perhaps cultivable wastes, which was likely to be decided by the panchayat.
• Another variant of this was a system where artisans and individual peasant households entered into a mutually negotiated system of remuneration, most of the time goods for services.
• For example, eighteenth-century records tell us of zamindars in Bengal who remunerated blacksmiths, carpenters, even goldsmiths for their work by paying them “a small daily allowance and diet money”    or services rendered by the servicing castes are paid in cash or in kind. This later came to be described  as the Jajmani System