The right option is; State 1 is liquid and State 2 is gas.
Liquid and gas states of matter are forms in which matter can exist and they both make up fluids and are present in the water cycle. The particles of liquid take the shape of the container it occupies and they have a fixed volume, while the particles of gas also expand to fill their containers and take the shape of its container. Liquid particles are not easily compressed, but gases are easily compressed by mechanical forces.
