Exp) Option b is the correct answer.

Diplomatic immunity is granted on the basis of two conventions popularly called the Vienna Conventions -the Convention on Diplomatic Relations, 1961, and the Convention on Consular Relations, 1963.

Statement 1 is correct. Diplomatic immunity is one of the principles of international law which limits the degree to which the officials and employees of foreign governments would be subject to the other country’s authority of police officers and judges. Vienna Convention of 1961 under Article 34 lays down those diplomatic agents shall be exempted from all duties and Taxes imposed, whether personal or real, national, regional, or Municipal. The sending State and the head of the mission shall be exempt from all national, regional or municipal dues and taxes in respect of the premises of the mission, whether owned or leased, other than such as represent payment for specific services rendered.

Statement 2 is incorrect. The Vienna Convention classifies diplomats according to their posting in the embassy, consular or international organisations such as the UN. A nation has only one embassy per foreign country, usually in the capital, but may have multiple consulate offices, generally in locations where many of its citizens live or visit. Diplomats posted in an embassy get immunity, along with his or her family members. The members of the family of a diplomatic agent forming part of his household shall, if they are not nationals of the receiving State, enjoy the privileges and immunities specified in Articles 29 to 36 of the Vienna Convention.