Statement 1 is incorrect: Under Section 12 of the Gram Nyayalaya Act, 2008, Gram Nyayalayas have criminal jurisdiction, meaning they can hear and decide certain criminal cases. Additionally, under Section 13, they also have civil jurisdiction over specific types of disputes. Thus, Gram Nyayalayas exercise both civil and criminal jurisdiction, making the given statement incorrect. Statement 2 is correct: According to Section 26, Gram Nyayalayas must make efforts for conciliation and settlement of civil disputes before proceeding with formal adjudication. To implement this, Section 27 mandates that the District Court, in consultation with the District Magistrate, prepare a panel of Conciliators. These Conciliators are village-level social workers with integrity, possessing the qualifications and experience prescribed by the High Court. Their role is to assist in dispute resolution, promoting amicable settlements. Hence, the correct answer is option B.