In this question, Statement 1 states that the Permanent Settlement was rarely extended to any region beyond Bengal. This means that the practice of the Permanent Settlement, which was a revenue system introduced by the British in Bengal in 1793, did not extend to other regions.

Statement II explains that after 1810, agricultural prices declined, which had a negative impact on the income of the Bengal Zamindars. The Zamindars were the landowners who collected revenue from the peasants under the Permanent Settlement system.

Option 1 states that both statements are individually true and Statement II is the correct explanation of Statement I. However, this option is not correct as Statement II does not explain why the Permanent Settlement was rarely extended to other regions.

Option 2 states that both statements are individually true but Statement II is not the correct explanation of Statement 1. This option is the correct answer as Statement 1 is true, but Statement II does not provide an explanation for it.

Option 3 states that Statement I is true but Statement II is false. This option is not correct as both statements are true.

Option 4 states that Statement I is false but Statement II is true. This option is incorrect, as Statement I is indeed true.

To summarize, option 2 is the correct