A, B and C are three matrices each of order 2 x 2.

Statement 1 : If A x B = A x C ⇒ B = C

Statement 2 : Cancellation law is applicable in matrix multiplication.

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.

We know that,

Matrix multiplication does not satisfy the cancellation law.

∴ Statement 2 is false.

Thus, if A x B = A x C, we cannot conclude that B = C.

∴ Statement 1 is false.

Hence, option 2 is the correct option.