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The correct answer for this question is option 1, which states that statement 1 only is correct.
Statement 1 states that Jeet Thayil has been nominated for the 2012 Man Booker Prize for his debut novel, Narcopolis. This statement is correct. Jeet Thayil was indeed nominated for the prestigious Man Booker Prize in 2012 for his novel Narcopolis. The book, set in Mumbai, explores themes of addiction and the city`s underbelly.
Statement 2, on the other hand, states that Narcopolis is a novel about the background of communal riots in Gujarat. This statement is incorrect. Narcopolis is not about communal riots in Gujarat, but rather focuses on the lives of a diverse group of characters involved in the opium trade in Mumbai.
Therefore, only statement 1 is correct, and option 1 is the correct answer.