Explanation:

• In 1857, Lord Canning passed the General Service Enlistment Act which decreed that all the future recruits to the Bengal Army would have to give an undertaking to serve anywhere their service might be required. This became one of the reasons for revolt as for Indians, as serving overseas means crossing the sea which meant loss of caste status, as those crossing the sea were not taken back to the fold of the caste.
• In the revolt, the lower castes didn't show any active sympathy for the rebellions. Therefore, the soldiers in the Bombay and Madras army, which had recruits from the lower caste, remained loyal to the British government. Hence statement 1 is correct.
• The 1857 revolt had a limited territorial outreach. Main areas were Western Bihar, Oudh, Rohillakhand, Delhi and the territory between Chambal and the Narmada. The regions south of Narmada were impacted very little. Hence statement 2 is not correct.