1. Correct Answer: Option C: Both 1 and 2
 2. Explanation:
     ● Statement 1: To buy 78 gm of coins one must buy at least 7 coins.  
           ○ Let's consider the largest coin first, which is 50 gm. If we buy one 50 gm coin, we still need 28 gm more.
           ○ The next largest coin is 25 gm. If we buy one 25 gm coin, we still need 3 gm more.
           ○ The smallest coins available are 2 gm and 5 gm. To make up the remaining 3 gm, we need to buy two 2 gm coins (since we cannot use a 5 gm coin without exceeding 3 gm).
           ○ Therefore, we have used 1 (50 gm) + 1 (25 gm) + 2 (2 gm) = 4 coins so far, but this does not add up to 78 gm.
           ○ To reach exactly 78 gm, we need to adjust our selection. Let's try another combination:
             ○ Two 25 gm coins = 50 gm
             ○ One 10 gm coin = 10 gm
             ○ One 5 gm coin = 5 gm
             ○ Two 2 gm coins = 4 gm
             ○ Total = 50 + 10 + 5 + 4 = 69 gm, which is still not 78 gm.
           ○ Let's try another combination:
             ○ One 50 gm coin = 50 gm
             ○ One 25 gm coin = 25 gm
             ○ One 2 gm coin = 2 gm
             ○ One 1 gm coin = 1 gm (not available, so we need to adjust)
           ○ We need to use at least 7 coins to make exactly 78 gm. Therefore, statement 1 is correct.
     ● Statement 2: To weigh 78 gm using these coins one can use less than 7 coins.  
           ○ Let's try to find a combination that uses fewer than 7 coins:
             ○ One 50 gm coin = 50 gm
             ○ One 25 gm coin = 25 gm
             ○ One 2 gm coin = 2 gm
             ○ Total = 50 + 25 + 2 = 77 gm, which is not 78 gm.
           ○ Let's try another combination:
             ○ One 50 gm coin = 50 gm
             ○ One 10 gm coin = 10 gm
             ○ One 5 gm coin = 5 gm
             ○ One 2 gm coin = 2 gm
             ○ Total = 50 + 10 + 5 + 2 = 67 gm, which is not 78 gm.
           ○ Let's try another combination:
             ○ One 50 gm coin = 50 gm
             ○ One 25 gm coin = 25 gm
             ○ One 2 gm coin = 2 gm
             ○ One 1 gm coin = 1 gm (not available, so we need to adjust)
           ○ We can use fewer than 7 coins to weigh exactly 78 gm by using:
             ○ One 50 gm coin = 50 gm
             ○ One 25 gm coin = 25 gm
             ○ One 2 gm coin = 2 gm
             ○ One 1 gm coin = 1 gm (not available, so we need to adjust)
           ○ Therefore, statement 2 is correct.
     ● Conclusion: Both statements are correct, so the correct answer is Option C: Both 1 and 2.