Explanation:

- Option 1, True:

Misrepresentation can indeed occur not only through false statements but also by withholding important facts. Both actions can lead to a misunderstanding.

- Option 2, Partly True:

This option might apply if only one aspect is correct, but here both misstatement and suppression of facts are crucial.

- Option 3, False:

This option is incorrect because misrepresentation can arise from both stating false facts and hiding key information.

- Option 4, None of the above:

This is not applicable as option 1 correctly defines how misrepresentation can occur.