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The easiest/quickest (and valid) solution for this question is that:

You are given Average for both classes and you are given the number of students in both classes so the ratio of students in those classes is 37:40. You are given a ratio, average score so just use the weighted average formula and you will get a unique value for the average and same way you can calculate the median as well, which will tell you whether the Average of the combined class would be greater than its median or not.

Hence Statement (1) is sufficient. Also, Statement (2) is not sufficient because we are given the total students but not the ratio of the students hence statement 2 is insufficient.

So, just by looking at the information, you can mark this question as (A). You don't need to even pick a pen for this question.

You can apply the logic in many such questions.


Hope this helps!
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