Explanation:

2nd statement is incorrect i.e. Locating the production process in the villages.
Industrial Revolution in Europe mainly emerged due to decline of mercantilism and rise of industrial capitalism.
Prior to the Industrial Revolution, which began in Britain in the late 1700s, manufacturing was often done in people's homes, using hand tools or basic machines. Industrialization marked a shift to powered, special-purpose machinery, factories and mass production.
The Industrial Revolution began in Britain for a number of different reasons. Britain had access to a number of natural resources, such as iron and coal. The agricultural sector of the British economy had been steadily growing during the 18th century. Agricultural stability allowed the British population to increase.