After using for some time, big transformers get heated up. This is due to the fact that 1. current produces heat in the transformers 2. hysteresis loss occurs in the transformers 3. liquid used for cooling gets heated Select the correct answer using the code given below.

The main reasons for heating in a transformer are power losses occurring during its operation. These include copper losses (I²R losses) in the windings due to the resistance of the copper wires, and iron losses (core losses) in the core material. Iron losses consist of hysteresis loss (energy dissipated due to the repeated magnetization and demagnetization of the core by the alternating magnetic field) and eddy current loss (induced circulating currents in the core causing resistive heating). Statement 1 correctly identifies copper loss. Statement 2 correctly identifies hysteresis loss, which is one component of iron loss.