Statement 1: During the reaction: N₂(g)+2H₂(g)→ N₂H₄ (l) volume contraction takes place.
Statement 2: Volume contraction always takes place when one of the product is in liquid state.

A. Statements 1 and 2 are true. Statement 2 is the correct explanation for statement 1.
B. Statements 1 and 2 are true. Statement 2 is NOT the correct explanation for statement 1.
C. Statement 1 is true, statement 2 is false.
D. Statement 1 is false, statement 2 is true.