Explanation:

- Statement 1: True. Since \( n \) is composite and not a perfect square, it can be written as \( n = ab \), with \( 1 < a < b < n \). At least one of \( a \) or \( b \) must be less than \( \sqrt{n} \).

- Statement 2: Also true. The larger of the two factors, \( b \), will be in the range \( \sqrt{n} < b < n \) (since \( n \) is not a perfect square, \( a \neq b \)).

- Thus, both statements are correct.

Correct Answer: Option 3 – Both 1 and 2