With reference to the 'Gram Nyayalaya Act', which of the following statements is/are correct? 1. As per the Act, Gram Nyayalayas can hear only civil cases and not criminal cases. 2. The Act allows local social activists as mediators/reconciliators. Select the correct answer using the code given below.

Statement 2 is correct because the Gram Nyayalaya Act, 2008, specifically provides for the appointment of local social activists as mediators or conciliators to facilitate the settlement of disputes. Statement 1 is incorrect because these courts are empowered to exercise both civil and criminal jurisdiction as specified in the First and Second Schedules of the Act, rather than being restricted to civil matters only. This question tests the core concept of the functional jurisdiction and procedural framework of the grassroots judicial system in India.