Both Statement-I and Statement-II are correct as they highlight the structure of prison administration in India. Statement-I reflects the devolution of prison management to State Governments, which have the autonomy to establish their own rules and regulations for day-to-day operations. Statement-II provides the legal context by referencing the Prisons Act of 1894, which confirms that the subject of prisons is under the control of Provincial Governments, thereby reinforcing State Governments' authority to manage prisons according to their own frameworks. This decentralization ensures that prison administration can be tailored to local contexts, enhancing the responsiveness of the penal system.