Using Statement 1, if he sells m crates of milk and e crates of eggs, we have:
40m + 25e = 300
and dividing by 5 on both sides, we have
8m + 5e = 60
Two of the three numbers above are multiples of 5, so the third also must be (if it's not clear why that is true, we can rewrite the equation as 8m = 60 - 5e = 5(12 - e), and if 8m is equal to 5 times something else, 8m must be a multiple of 5). If 8m is a multiple of 5, then m is a multiple of 5, and since m > 0, the only possible value for m is 5, since if m were 10 or greater, the total cost of the crates would be too large. Since we can find m, we can find e, so Statement 1 is sufficient.
Statement 2 is clearly not sufficient, so the answer is A. Note though that there's a problem with Statement 2 -- it's not consistent with Statement 1. It should say that the number of crates of milk is one greater than the number of crates of eggs, not the reverse, which is what it says now.