Explanation:

•  During the rule of Mughal Emperor Aurangzeb, there was resentment among Hindus for revival of Jaziya and general destruction of temples under imperial orders. The revolt triggered when a Mughal soldier killed a Satnami. The Satnamis killed the soldier in revenge and in turn Mughal soldiers were sent to teach them a lesson. In 1672, at Narnaul, an armed conflict occurred between the peasants and the Mughals. Some 5,000 Satnamis stood up in arms and routed the Mughal troops in the town, drove away the Mughal administrators and set up their own administration under their leader Birbhan. Hence Statement 1 is correct.
• The absence from North India of the major proportion of royal troops helped the revolting people to establish a temporary gain and the movement of rebels towards Delhi became a matter of serious concern for the emperor himself.
• The Satnamis were mostly peasants, artisans, and lower caste people, such as Goldsmiths, Carpenters, Sweepers, Tanners, and other ignoble beings. Hence Statement 2 is correct.
• They did not observe distinction of caste and rank or between Hindus and Muslims and followed a strict code of conduct.
• It is interesting to note that the local Zamindars, many of whom were rajputs, sided with Mughals in this conflict.