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

Statement 1 claims that Greek influence on Indian art manifested itself in the form of the Gandhara School of Art and moved from Taxila to Mathura and Saranath. This is indeed true. The Gandhara School of Art emerged in the region of Gandhara, which was influenced by Greek culture due to the conquests of Alexander the Great. The art produced in this school incorporated Greek artistic techniques and styles.

Statement 2 claims that during the Gupta period, art became entirely and truly Indian. This statement is false. The Gupta period is known as the Golden Age of India and witnessed many advancements in various fields including art and architecture. However, Indian art during this period was not entirely Indian. It was influenced by various factors, including the preceding Gandhara School of Art, as well as influences from other regions such as Persia and Central Asia.

Since statement 2 is false, option 1 which states that statement 2 is the correct explanation of statement 1 is incorrect.

Therefore, the correct answer is option 3 which states that statement 1 is true but statement