For **32K X 16**, we calculate the required address lines and data lines as follows:
- The total number of addressable locations (32K) corresponds to \( 32 \times 1024 = 32768 \) memory locations.
- To find the number of address lines, we use the formula:
\[
\text{Number of address lines} = \log_2(32768) = 15 \text{ address lines}.
\]
- The data lines correspond to the word size, which is **16 bits**. Therefore, we need **16 data lines**.
Thus, the correct answer is **(1)**: **address lines=14, data lines=16**.