Choose the correct alternative.

Statement 1:  Water can be used to extinguish fire caused by short-circuit of an electrical appliance.

Statement 2:  Water lowers the ignition temperature of the burning material.

Solution:

Statement 1 is incorrect and Statement 2 is correct.

If water is used to extinguish a fire caused due to short-circuit of electrical equipment, water may conduct electricity and harm those trying to douse the fire. So statement 1 is incorrect.  

When water is poured over the fire it cools the burning material so that its temperature is brought below its ignition temperature. This prevents the fire from spreading.  So statement 2 is correct.