Statement 2 is correct. The Upanishads are ancient philosophical texts forming part of the Vedic corpus and are classified as Shruti literature. Their composition period is generally placed between approximately 800 BCE and 300 BCE. The Puranas, on the other hand, are post-Vedic texts belonging to Smriti literature, with their composition largely occurring from around 300 CE onwards. Therefore, the Upanishads were indeed composed earlier than the Puranas.
Statement 1 is incorrect. The Upanishads extensively utilize parables, metaphors, and symbolic narratives to convey complex spiritual and philosophical ideas. Notable examples include:
Options (A), (C), and (D) are incorrect because Statement 1 is false and Statement 2 is true. Option (A) is incorrect as it states only Statement 1 is correct. Option (C) is incorrect as it claims both statements are correct. Option (D) is incorrect as it suggests neither statement is correct.