The correct option is (b).
Explanation
The nomenclature of the Indian subcontinent is deeply rooted in its geographical features and historical interactions with neighboring civilizations, particularly regarding the river systems of the northwest.
Statement 1 is Incorrect: The word 'India' was derived from the river Indus, not the Ganga. The river Indus is known as Sindhu in Sanskrit. The name 'India' is an etymological evolution resulting from foreign interactions with this specific river system.
Statement 2 is Correct: The Iranians and the Greeks, who arrived through the northwest approximately 2500 years ago, were familiar with the Indus river. Due to linguistic variations, they referred to it as the Hindos or the Indos. Consequently, the land lying to the east of this river came to be known as India.
Key Takeaway: The name 'India' originates from the river Indus (Sindhu), reflecting the geographical terminology used by ancient Iranians and Greeks to designate the land east of the river.