The correct answer is: Only 2.
Fag (Phag) is a spring festival celebrated in the month of February-March in Himachal Pradesh. It is also known as the yellow festival because people wear yellow clothes and decorate their houses with yellow flowers and leaves. The festival is a time for people to celebrate the arrival of spring and to pray for a good harvest.
The first statement is correct. Fag is celebrated in the month of February-March.
The second statement is incorrect. Fag is not known as the yellow festival. It is known as the spring festival.