Explanation:

Neither 1 nor 2

"Central sector schemes are mainly formulated on subjects from the Union List but are implemented by the state government."

This statement is Incorrect  Central sector schemes are indeed formulated by the Central Government on subjects from the Union List. However, they are not necessarily implemented by state governments. These schemes are executed and financed directly by the Central Government.

"Centrally Sponsored Schemes are formulated on the subjects from the State List but are fully funded by the central government."

This statement is incorrect. Centrally Sponsored Schemes are typically on subjects from the State List or the Concurrent List, but they are not fully funded by the Central Government. Instead, these schemes involve a cost-sharing arrangement between the Centre and the States, with the Centre usually bearing a significant portion but not the entire cost.

Neither 1 nor 2.