Statement 1 Benzene is reduced to 1,4 -cyclohexadiene by reaction with sodium in liquid ammonia in the presence of ethanol. and Statement 2 The reaction involves the formation of benzene anion radical which takes up proton from ethanol to give finally the reduction product.

Understanding the reduction of benzene to 1,4-cyclohexadiene begins with the unique chemistry of sodium in liquid ammonia. This process is an example of a dissolving metal reduction, where an alkali metal, in this case, sodium, dissolves in liquid ammonia to create a highly reactive solution capable of reducing certain organic molecules.

The key to this reduction lies in the electrons donated by sodium atoms. When sodium (Na) dissolves in liquid ammonia (NH₃), it donates an electron to form solvated electrons, which are free to move through the solution. These electrons are highly reactive and readily available to reduce the aromatic benzene ring. The solution turns a deep blue due to the presence of these solvated electrons. The overall reduction process involves two separate electron transfers, ultimately transforming the benzene into 1,4-cyclohexadiene, a less stable but still aromatic compound.

This method of reduction is advantageous for its mild conditions and the ability to precisely stop the reaction at the diene stage, avoiding further hydrogenation to a completely saturated cyclohexane, which would lose its aromatic character.

A pivotal moment in this reaction is the formation of the benzene anion radical. This intermediate forms when one of the highly reactive solvated electrons from the sodium in liquid ammonia solution is transferred to a benzene molecule.

The benzene molecule, traditionally stable due to its aromaticity, accepts an electron, becoming a negatively charged anion radical. Here's the beauty of it: despite benzene's stability, the chemical environment created by the liquid ammonia and sodium is reductive enough to disrupt the aromatic system, albeit temporarily, creating this radical species. This anion radical is not the end of the story; it is an unstable intermediary that must undergo further reactions to stabilize. The presence of this radical is crucial as it sets the stage for the addition of hydrogen atoms - the next vital step in the conversion to 1,4-cyclohexadiene.

After the benzene anion radical has been formed, its journey towards becoming 1,4-cyclohexadiene includes a crucial proton transfer from ethanol (CH₃CH₂OH). Ethanol plays a dual role in this reaction; as a solvent and as a source of protons (H⁺).

The negatively charged benzene anion radical is now set to react with ethanol. Proton transfer is a fundamental mechanism where a proton donor (ethanol in this case) transfers a proton to a proton acceptor (the benzene anion radical). For this particular case, the attraction between the negatively charged benzene rings and the slightly positive hydrogen atoms in ethanol is vital. The involvement of ethanol facilitates the abstraction of the proton by the benzene anion radical, leading to the formation of 1,4-cyclohexadiene.

As the reaction proceeds, ethanol loses a proton and forms the ethoxide ion (CH₃CH₂O^-), which can be associated with the sodium ion formed at the beginning of the reaction. This proton transfer is crucial as it finalizes the reduction of benzene to 1,4-cyclohexadiene, yielding the desired diene along with sodium ethoxide as a byproduct.