Option 1 states that both statements are individually true, and statement II is the correct explanation of statement I. Let`s analyze each statement to understand their accuracy.

Statement I: There has been a sharp decline in the savings rate in the Indian economy between 2007-2008 to 2015-2016.

This statement implies that the savings rate has decreased significantly during the mentioned time period. If data supports this claim, then statement I is true.

Statement II: There has been a fall in household and public savings.

This statement suggests that both household and public savings have decreased. Again, if data supports this claim, then statement II is true.

Option 1 concludes that both statements are true, and statement II is the correct explanation for statement I. This means that the decline in savings rate mentioned in statement I can be attributed to the fall in household and public savings described in statement II.

It is important to note that without access to specific data or supporting evidence, we rely on the accuracy of the information provided in the question. Thus, based on the given information, option 1 is the correct answer.

Note: It is always advisable to independently verify the accuracy of statements by referring to reliable sources or consulting experts.