Nitrous acid is produce when sodium nitrate is reacted with acid. The nitrous acid can produce nitrosonium ion as electrophile. The tertiary amine given undergoes electrophilic substitution reaction with electrophile. The para substituted product is formed as major product.
NaNO2+HX→HNO2+NaX
2HNO2→NO++NO2−+H2O

∴ Statement (2) is incorrect
