(D) Statement 2 is correct but Statement 1 is incorrect.
In the 4Ws canvas, stakeholders are found in the "Who" block, not the "When" block. Statement 2 is correct — stakeholders are indeed people who face the problem and benefit from the solution.
The 4Ws canvas stands for Who, What, Where, and When. "Who" identifies the stakeholders (affected people/beneficiaries), "What" defines the problem, "Where" is the context, and "When" refers to the timing/frequency of the problem. Examiners expect students to clearly know which block contains which information. Statement 1 confuses "When" with "Who," making it incorrect.