The correct answer is option 3: Both 1 and 2.

Statement 1 is correct - England was fortunate in that coal and iron ore were plentifully available to be used in industry. The abundance of these resources played a significant role in fueling the growth of the Industrial Revolution in England. Coal was used as a source of energy, particularly for steam engines, while iron ore was essential for the production of machinery and infrastructure.

Statement 2 is also correct - Until the eighteenth century, there was a scarcity of usable iron. Prior to the Industrial Revolution, iron production was limited and costly. However, advancements in technology, such as the development of coke smelting, increased the efficiency and affordability of iron production during the eighteenth century. This breakthrough in iron production was crucial for the expansion of industries that required large quantities of iron, such as the construction of machinery and railways.

Therefore, both statements are accurate and describe important factors that contributed to the initial phase of the Industrial Revolution in England.