Refer to the diagram below,


As, X is the midpoint of AC and Y is the midpoint of BC, XY = AB/2
Also, the height of the triangle ABC with respect to base AB will be twice the height of the triangle XYC with respect to base XY. [Try to prove this yourself using the concepts of similarity of triangles]

Hence, area of triangle ABC = 4*(area of triangle XYC)

Similarly, area of triangle XYC = 4*(area of triangle RSC)

Hence, area of triangle RSC = (area of triangle ABC)/16

So, if we can know the area of ABC, we can determine the area of RSC.

Statement 1: Clearly sufficient.

Statement 2: As we don't the length of the base of triangle ABC, the area of ABC can have different values.

Not sufficient

The correct answer is A.