The first step of "The Theory of Demographic Transition" indicates a period with high birth rate and high death rate. Option 1, "High Birth-Rate and High Death-Rate," correctly describes this initial stage. During this phase, the population experiences a balance between high fertility and high mortality rates. The high birth rate is often due to factors such as lack of contraception, limited access to healthcare, and cultural norms around large families. Conversely, the high death rate can be attributed to factors such as poor healthcare infrastructure, inadequate nutrition, and prevalent diseases. This stage typically characterizes societies that are primarily agrarian and have limited industrialization and modernization. Over time, as social and economic factors change, societies transition into the next stages of demographic transition.