The correct option is Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
The administration of prisons in India operates within a well-defined constitutional and legislative framework. Prisons fall under Entry 4 of the State List (List II) of the Seventh Schedule of the Constitution of India, making it an exclusive subject of State legislation and administration.
Statement-II directly explains the legal and legislative basis for Statement-I. The reason State Governments manage prisons with their own rules is precisely because the Prisons Act, 1894 placed this subject under provincial/state control — a position further entrenched in the Constitution through the State List. Thus, Statement-II is the correct explanation for Statement-I.
Key Takeaway: Prisons are a State subject under Entry 4 of List II of the Seventh Schedule; the Prisons Act, 1894 is the foundational legislation that vested control of prisons with Provincial/State Governments, forming the legal basis for State-level prison administration in India.