Step 1: Analyze statement (1).
Statement (1) tells us that the distance is greater than 200 kilometers, but it does not give any information about the time it took to drive this distance, so statement (1) alone is insufficient.
Step 2: Analyze statement (2).
Statement (2) tells us that the distance is less than 205 kilometers, but it also does not tell us the time it took Paula to drive this distance, so statement (2) alone is insufficient.
Step 3: Combine both statements.
We now know that the distance is between 200 and 205 kilometers. Using the relationship \( \text{Time} = \frac{\text{Distance}}{\text{Speed}} \), we can check if it took less than 3 hours to drive. Since the speed is greater than 70 km/h, the time is:
\[
\text{Time} = \frac{\text{Distance}}{70}
\]
For a distance of 200 kilometers, the time is:
\[
\frac{200}{70} \approx 2.86 \text{ hours}
\]
For a distance of 205 kilometers, the time is:
\[
\frac{205}{70} \approx 2.93 \text{ hours}
\]
Thus, in both cases, the time is less than 3 hours, and both statements together are sufficient to answer the question.
\[
\boxed{C}
\]