Solution:
(A) Both statements are correct.
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Statement-1: This statement is correct because terrestrial habitats are those environments where plants and animals live on land. Examples include forests, grasslands, deserts, mountains, and Polar Regions.
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Statement-2: This statement is also correct because it accurately lists examples of terrestrial habitats. Forests, grasslands, mountains, deserts, and Polar Regions are all types of terrestrial habitats where various plants and animals live.