Statement 1 is correct: Li-Fi (Light Fidelity) utilizes light waves for data transmission. It uses rapid flickering of light, invisible to the human eye, to carry information. Statement 2 is correct: Li-Fi is a wireless technology and has the potential to be significantly faster than Wi-Fi. While actual speeds depend on various factors, Li-Fi boasts theoretical speeds exceeding 100 Gbps compared to the current Wi-Fi standards offering up to 11 Gbps. Hence, option C is the correct answer.