The correct option is 2 only
Explanation
The sixth century BCE witnessed the emergence of early states in the Indian subcontinent, classified primarily into monarchies and republican states known as ganas or sanghas. Simultaneously, Brahmanical texts began codifying social and political norms.
Statement 1 is Incorrect:
Unlike monarchies where power was concentrated in a single king, ganas or sanghas were oligarchies where power was shared by a number of men, often collectively called rajas. In these states, decisions were taken through discussions and debates in assemblies. Both Lord Mahavira and Lord Buddha belonged to such ganas (the Jnatrikas and the Sakyas, respectively). The Vajji confederacy is a prominent example of this political structure.
Statement 2 is Correct:
From the sixth century BCE onwards, Brahmanas began composing Sanskrit texts known as the Dharmasutras. These texts laid down norms for rulers (who were ideally expected to be Kshatriyas) as well as for other social categories. They prescribed specific duties for the rulers, such as collecting taxes and protecting the people, rather than restricting norms only to the Brahmanas.
Key Takeaway:
Mahajanapadas included both monarchies and oligarchic ganas. The Dharmasutras were comprehensive normative texts outlining the duties of all varnas, including the administration and conduct of rulers.