Option 1 states that both statement I and statement II are true, and that statement II is the correct explanation of statement I. To assess the validity of this option, let`s examine each statement separately.

Statement I states that the economy of India in the 19th century came to a state of ruin under the English East India Company. This statement is generally true. The British Raj had a significant impact on India`s economy during this period, with policies that favored British economic interests and often exploited Indian resources, leading to economic decline in some sectors.

Statement II states that the English East India Company`s acquisition of Dtwani right led to the miseries of the peasants and those associated with the traditional handicrafts industry of India. This statement is also true. The Dtwani right was a financial privilege granted to the East India Company, allowing them to collect revenue directly from peasants and artisans. This system was often exploitative, burdening the peasants with high taxes and crippling the traditional crafts industry.

Therefore, option 1 is correct. Both statements are individually true, and statement II provides a correct explanation for the state of ruin mentioned in statement I.