Statement I: It is not possible to cut a rectangle into exactly 4 square sheets. But the 4 squares don’t have to be equal in area. So, we can have 4 squares – 8×8, 8×8, 4×4, 4×4

Statement II: Now we know that by merging two equal area congruent triangles we can form a rectangle. So, we have 5 equal sized rectangles instead of 10 triangles. We can easily cut 1 rectangle into 5 equal sized rectangles.

Hence, both statements 1 and 2 are correct.