Option 1 states that both statements are individually true and that statement 2 is the correct explanation of statement 1. Let`s analyze each statement to understand why this is the correct answer.

Statement 1: The recent national election results in India are indicative of a transition towards a new region-based multi-party coalition system.

This statement is true because the election results in India have shown an increasing trend of regional parties forming alliances and coalitions to compete against the dominant national parties. This transition towards a multi-party coalition system is evident in recent elections.

Statement 2: The intensification of competitive politics has changed the party system in India from being a rivalry between national parties into one between alliances and coalition of national and state parties.

This statement is also true. Competitive politics in India has intensified over the years, leading to a shift in the party system. Previously, the rivalry was primarily between national parties. However, with the intensification of competition, alliances and coalitions between national and state parties have become common, reshaping the party system.

Statement 2 explains and provides a logical reason for Statement 1. The intensification of competitive politics has prompted the change from a rivalry between national parties to a system where alliances and coalitions of national and state parties play a significant role.