< b="" />Introduction< />
In the realm of politics, political parties play a crucial role in shaping the democratic system of a country. They serve as the primary means through which individuals can participate in the political process, contest elections, and ultimately hold power in the government. Additionally, political parties often reflect the fundamental political divisions that exist within a society. Let's analyze the given statements to understand their correctness.

< b="" />Statement 1: A political party is a group of people who come together to contest elections and hold power in the government.< />
This statement accurately defines the basic purpose and function of a political party. Political parties are formed by like-minded individuals who share common political goals and ideologies. They unite to contest elections and win seats in the government to implement their policies and agendas. By mobilizing support and organizing campaigns, political parties provide a platform for individuals to participate in the democratic process and contribute to governance. Therefore, statement 1 is correct.

< b="" />Statement 2: Political parties reflect fundamental political divisions in a society.< />
Political parties often emerge as a result of the diverse range of opinions, interests, and ideologies present within a society. They serve as a channel for expressing and organizing these differences, thereby reflecting the fundamental political divisions that exist. In a democratic society, citizens hold varying perspectives on issues such as governance, economy, social policies, and foreign relations. Political parties represent these divergent viewpoints and compete with each other to gain support from the electorate. They formulate political platforms that address the concerns and aspirations of different sections of society. Consequently, political parties act as a mirror reflecting the multifaceted political landscape of a nation. Therefore, statement 2 is correct.

< b="" />Conclusion< />
Both the given statements are correct. Political parties are essential components of a democratic system as they enable citizens to participate in politics and hold power in the government. Furthermore, they reflect the diverse political divisions that exist within a society. Political parties play a vital role in shaping the policies and direction of a nation, making them indispensable to the functioning of a robust democratic system.