The correct answer is: Both 1 and 2.
Angora rabbits breeding is functioning at Kandwari and Nagwain. This is a fact that can be verified by searching for information about Angora rabbit breeding in India. Upgradation of indigenous cattle is being carried out by cross-breeding with Jersey and Holstein. This is also a fact that can be verified by searching for information about cattle breeding in India.
Therefore, both statements are true.