Explanation:

- Statement 1: Correct. The Indian Constitution mandates reservation of seats in Panchayats for Scheduled Castes and Scheduled Tribes to ensure their participation in the governance process. This provision aims to uplift and empower historically marginalized communities.

- Statement 2: Incorrect. Panchayats do have the authority to levy, collect, and appropriate taxes, duties, tolls, and fees, which are essential for performing their functions and sustaining their administrative expenses. The specifics can vary by state.

- Option 1: 1 only. This option is correct as it aligns with the constitutional provisions regarding Panchayats.

Therefore, Option 1 is the correct answer.