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The correct answer is option 4: Neither 1 nor 2.
Statement 1: "They were ardent patrons of Shaivism and did not support other forms of religion."
This statement is incorrect. The Rashtrakuta kings were not exclusive patrons of Shaivism. In fact, they were more tolerant towards different forms of religion and supported Buddhism, Jainism, and other religious traditions.
Statement 2: "They promoted only Sanskrit scholars and gave them large grants."
This statement is also incorrect. While the Rashtrakuta kings did patronize Sanskrit scholars and supported Sanskrit literature, they also encouraged scholars from other languages. They had a broader perspective on education and supported the promotion of various languages and literature.
Therefore, neither statement 1 nor statement 2 is correct. The Rashtrakuta kings were not exclusively focused on Shaivism and Sanskrit scholars.