The correct answer is indeed option 1. Here`s why:

Statement-I is saying that 7th August is declared as the National Handloom Day. This is true. The Government of India indeed declared this day as National Handloom Day in 2015 to honor the handloom weavers in the country and to highlight India`s handloom industry.

Statement-II is claiming that the Swadeshi Movement was launched on the same day in 1905. This is also true. The Swadeshi Movement, a part of Indian Independence Movement started on this day aiming to improve Indian economy by promoting local or indigenous goods like handloom textile.

The reason why option 1 is correct is because both of these statements are true and Statement-II explains why the government chose 7th of August as National Handloom day - to celebrate the anniversary of the Swadeshi movement, which made a major contribution to India`s freedom struggle and involved promotion of indigenous industries like handloom.