Option 1 implies that Sautrantika and Sammitiya were sects of Jainism. This is incorrect. Sautrantika and Sammitiya are Buddhist philosophical schools, not Jainism. Thus option 1 is incorrect.

Option 2 indicates that Sarvastivadin held that the constituents of phenomena were not wholly momentary, but existed forever in a latent form. This is accurate. The Sarvastivadin was a Buddhist school of thought that believed in the existence of `dharmas` or phenomena at all times; past, present, and future. The name `Sarvastivadin` itself translates to `those who believe in the existence of everything`. So, this statement is correct, making Option 2 the correct answer.

Option 3 suggests that both statements are correct. But as we have clarified, Statement 1 is incorrect. Hence option 3 is also incorrect.

Option 4 suggests that neither statement is correct. However, as we clarified in option 2, the second statement is indeed correct. Therefore, option 4 is incorrect.