Step 1: Evaluate Statement I. \(C_2H_5OH\) acts as a weak nucleophile (via oxygen lone pairs), and \(AgCN\) provides the cyanide/isocyanide group. Both are sources of nucleophilic species. (Statement I is True).
Step 2: Evaluate Statement II. \(KCN\) is ionic and typically produces nitriles (\(R-CN\)). However, \(AgCN\) is primarily covalent; the lone pair on Nitrogen is more available for attack, typically producing isocyanides (\(R-NC\)). Therefore, they do not both generate nitrile nucleophiles under all conditions. (Statement II is False).