Step 1: Analyze Statement 1.
Let the number of pens be \( x \) and the number of pencils be \( y \). From statement 1, we know:
\[
3x + 2y = 10
\]
This equation alone is sufficient to solve for the values of \( x \) and \( y \) (the number of pens and pencils). Hence, statement 1 alone is sufficient.
Step 2: Analyze Statement 2.
Statement 2 only gives us information about the cost of pens being less than 10 dollars, but it doesn't provide a relationship between the number of pens and pencils. Hence, statement 2 alone is insufficient.
Step 3: Conclusion.
The correct answer is (A).