Which of the following statements are correct ?

Statement 1: In a closed system where non-conservative forces are present, the mechanical energy of the system is not conserved.
Statement 2: The principle of conservation of energy states that energy can neither be created nor destroyed, but it can be transformed from one form to another.

1
 Only Statement 1 is correct.
2
Only Statement 2 is correct
3
 Both statements are correct
4

None of the statements are correct. 

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