Statement-I : Lithium reacts with water more vigorously than sodium
Statement-II : Lithium  possesses small size and very high hydration energy
The correct answer is

As the size of metal increases electron losing tendency increases and hence chemical reactivity increases
 Reactivity with water
Na > Li

Hydration enthalpy: [HE]
   

Size of M⁺ ions : Li⁺ < Na⁺ < K⁺ < Rb⁺ < Cs⁺
H.E Order  : ${\mathrm{Li}}^{+}>{\mathrm{Na}}^{+}>{\mathrm{K}}^{+}>{\mathrm{Rb}}^{+}>{\mathrm{Cs}}^{+}$

As the size of M⁺ ion increases, Nuclear charge decreases and hence attractive forces on the water molecule decreases, and hence degree of hydration decreases
Therefore hydration energy decreases
i.e Li⁺ ion has highest hydration energy
sublimation energy (S.E) & Ionisation energies [IE] are absorbed energies,
where as hydration energy [H.E] is released energy
In the case of Li
 

As high H.E of "Li" it can easily gives the electrons in large number, therefore it can acts as strongest. Reducing agent inaqueous solutions among [alkali] metals in the periodic table.