Answer:
Option C, Both observation 1 and observation 2
Step-by-step explanation:
As per the geocentric model, the earth lies at the center of the Universe and all planets, sun, stars and other celestial bodies rotate around the earth.
It was believed by the people of those days that the sun rotates around the earth and completes its one rotation in one day. Thus the part of earth which faces the sun, seems to have sunrise while the other part will have the sunset.
Hence, option C is correct.