Concept:
A geostationary satellite orbits in the equatorial plane with a period equal to one day, so it appears fixed over a point on Earth. This requires a very specific, high altitude.
Step 1:
The geostationary altitude is about 36000 km, not 700 to 900 km (that low range is typical of sun synchronous, near polar remote sensing satellites). Therefore Statement-I is incorrect.
Step 2:
Because a geostationary satellite stays over the same region continuously, it is ideal for weather observation and telecommunication relays. Therefore Statement-II is correct.
Answer: Option (2) — Only statement-II is correct.