Consider the following statements:

Statement-I: The East India Company expanded its operations in Bengal by securing zamindari rights and establishing a fortified settlement near its factory.

Statement-II: By the early 18th century, the Company had gained extensive privileges, including the right for its officials to engage in private trade without paying any duties.

Which one of the following is correct with regard to the above statements?

1
Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I
2
Both Statement-I and Statement-II are correct, but Statement-II is not the correct explanation for Statement-I
3
Statement-I is correct, but Statement-II is incorrect
4
Statement-I is incorrect, but Statement-II is correct

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