Option 1 states that the cash component of the Sampoorna Grameen Rozgar Yojana is solely funded by the Central Government. This implies that the Central Government bears the entire financial burden of the cash component of the program.

Option 2 states that the states and union territories receive food grains free of cost under the Sampoorna Grameen Rozgar Yojana. This means that the food grains required for the program are provided by the Central Government without any expense being borne by the states or union territories.

The correct answer is option 2 because it correctly states that both statements are correct. The cash component is funded exclusively by the Central Government, and food grains are provided free of cost to the states and union territories.

In summary, the Sampoorna Grameen Rozgar Yojana is a program where the Central Government bears the entire cost of the cash component and provides food grains to the states and union territories without any expense for them.