The correct answer is 1 only.

• Democracy involves competition among various political parties and political parties use social division to get support.
• Due to this political competition in a democracy is social divisions that can lead to political divisions.
• In a democracy, a community may peacefully voice their grievances.
• Democracy is the best way to accommodate social diversity. 
  • It accommodates social diversity as it allows for equality, fair representation to all irrespective of their caste, creed, colour, race, religion, language or place of residence. 
  • Hence, Statement 1 is correct.
• Democracy does not always lead to the disintegration of the society based on social divisions as all social divisions are not dangerous. Hence, Statement 2 is incorrect.
• However social divisions may lead to conflict, violence, or even disintegration of a country in some cases. 
• Social divisions take place when social differences overlap.
  • A person may have multiple identities.
  • All social differences do not result in social divisions. 

• Democracy is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. 
• Democracy is the government of the people, by the people, and for the people.
• It leads to good governance and helps in the Welfare of the public.
• It accommodates diversities like caste, religion, race, religion, ethnicity, etc. 
• People enjoy various rights like fundamental rights under democracy political system.  
• It leads to a government by the people through free and fair elections.
• It leads to the empowerment of weaker sections.  
• The constitution of India accommodates equality among various communities and social groups to strengthen democracy.
  • 33% reservation is granted to women in local panchayats.  
• It checks corruption and misuse of power.
• It leads to a transparent and accountable government.