Option 1 states that the Governor of a State can reserve certain bills passed by the State Legislature for consideration of the President of India. This statement is correct. As per the Indian Constitution, the Governor has the power to reserve certain bills for the consideration of the President. This means that the Governor can choose to withhold their assent to the bill and send it to the President for approval. The President then has the authority to either give assent to the bill or withhold his approval.

Option 2 states that the Governor of a State can make the rules to conduct the business of the State Government. This statement is also correct. The Governor has the power to make rules regarding the procedure and conduct of the business in the State Government. These rules help in maintaining the smooth functioning of the State Government.

Based on the explanations above, both statements are correct. Therefore, the correct answer is option 3, which states that both statement 1 and statement 2 are correct.