Step 1: Understanding the Concept:
This question tests the definitions of Pleiotropy and Co-dominance. Pleiotropy occurs when one gene influences multiple phenotypic traits. Co-dominance occurs when two different alleles are both fully expressed in the phenotype.
Step 2: Detailed Explanation:
1. Statement 1: This is the definition of Pleiotropy. For example, in Phenylketonuria, a single gene mutation leads to mental retardation, reduced hair, and skin pigmentation. This statement is correct.
2. Statement 2: The AB blood group is indeed an example of co-dominance, but the explanation is wrong. It is regulated by two dominant alleles ($I^A$ and $I^B$), not one dominant and one recessive. $I^O$ (or $i$) is the recessive allele in the ABO system. This statement is incorrect.
Step 3: Final Answer
Only Statement (1) is correct.