Correct Option (b):
Statement 2 is correct. According to Article 75 of the Constitution, the President appoints the Ministers and allocates portfolios to them. This action is undertaken by the President on the advice of the Prime Minister. The Prime Minister holds the primary role in recommending ministerial assignments.
Incorrect Options:
Statement 1 is incorrect. The creation of Ministries and Departments of the Government of India is governed by the Government of India (Allocation of Business) Rules, 1961. These rules are made by the President under Article 77 of the Constitution. Therefore, Ministries and Departments are created by the President, acting on the advice of the Prime Minister, not by the Prime Minister on the advice of the Cabinet Secretary.
Option (a) is incorrect because Statement 1 is false.
Option (c) is incorrect because only Statement 2 is correct, while Statement 1 is false.
Option (d) is incorrect because Statement 2 is correct.