Explanation:

- Statement 1: The Department of Economic Affairs (DEA) is indeed the nodal agency responsible for formulating and monitoring India's economic policies affecting domestic and international aspects. This is accurate.

- Statement 2: The DEA is indeed responsible for preparing and presenting the Union Budget before Parliament. However, the Railway Budget has been merged with the Union Budget since 2017. While the Union Territories' budget is also managed by the DEA, the statement broadly captures the essence of DEA's responsibilities.

- Option 1: Only statement 1 is correct. This is incorrect since both statements are fairly accurate.

- Option 2: Only statement 2 is correct. This is incorrect as statement 1 is also accurate.

- Option 3: Both 1 and 2 are correct. This option is appropriate based on the given information.

- Option 4: Neither statement is correct. This is inaccurate as both statements have valid points.

Correct Answer: Option 3 - Both 1 and 2