Here finite idependency needs to be understood properly.U can think it as finite number of constraints , for example a precedes b so re is a*b* which is regular but it is an infinite language.
But take an example of L = {am bn | m = n}
Now the dependency does not remain finite since we do not know how many a's will come exactly and also here for each 'a' in the string each 'b' is required , so dependency is not finite here.
Hence statement 1 is correct.
Now we come to statement 2.
Length of a string has to be finite .There is no meaning of a string having infinite length.But yes it may contain infinite number of strings in the language.
Whenever we say a language is infinite , then it is actually referred to number of strings not the length of a string.
Hence C) is the correct option.