The primary cause for the rise of Jainism and Buddhism was the religious unrest in India in the 6th century B.C
The complex rituals and sacrifices advocated in the Later Vedic period were not acceptable to the common people. Hence, statement 1 is incorrect.
The teachings of Upanishads, an alternative to the system of sacrifices, were highly philosophical in nature and therefore not easily understood by all.
The growth of trade led to the improvement in the economic conditions of the Vaisyas.
As a result, they wanted to enhance their social status but the orthodox. Varna system did not allow this. Therefore, they began to extend support to Buddhism and Jainism.