Both C2H5OH and AgCN can generate nucleophile. KCN generates nitriles on substitution reactions with haloalkanes, where AgCN generates isonitriles on substitution reactions with haloalkanes. Because KCN is ionic and has ' C ' nucleophilic centre whereas AgCN is covalent and has ' N ' nucleophilic centre. Hence, statement I is true but statement II is false.