Cost of watch = $200
Target question => what is his actual profit percentage?
To find profit and evaluate profit percentage, we need the selling price of the watch.
Statement 1=> Alex gave a discount of 25% while selling the watch.
The actual discount can be calculated from the selling price but the selling price is unknown. So, discount and profit cannot be evaluated. Therefore, statement 1 is NOT SUFFICIENT.

Statement 2=> Alex made a profit of 33.3% when calculated on the selling price.
But selling price = s
Therefore, profit = 33.3% of s = 0.333s
Cost price = 200, profit = 0.333s, selling price = s
s - 0.333s = 200
0.667s = 200
s = 200/0.667 =$299.9
$$\Pr ofit\ percentage=\frac{profit}{\cos t\ price}\cdot\frac{100}{1}$$ $$\%\ profit=\frac{99.9}{200}\cdot\frac{100}{1}$$
Therefore, statement 2 alone is SUFFICIENT. Hence, the correct answer is option B.