Analyze Statement I

Statement I: $$C_2H_5OH$and$AgCN$both can generate nucleophile.$

• For $C_2H_5OH$: Ethanol has lone pairs on oxygen, so it can act as a neutral nucleophile.
• For $AgCN$: Silver cyanide is largely covalent. In reactions, the cyanide group is not freely available as $CN^-$ in the same way as ionic cyanides, but the species can still participate through the cyanide group. In haloalkane reactions, $AgCN$ leads mainly to isocyanide formation due to attack via nitrogen.

Hence, both can generate/provide nucleophilic attack.

Therefore, Statement I is true.

Analyze Statement II

Statement II: $KCN$ and $AgCN$ both will generate nitrile nucleophile with all reaction conditions.

• $KCN$ is ionic and gives free $CN^-$, which is an ambident nucleophile. In alkyl halide substitution, carbon-end attack predominates, giving nitriles ($R-C\equiv N$).
• $AgCN$ is covalent, so free $CN^-$ is not available. In reactions with alkyl halides, attack occurs mainly through nitrogen, giving isocyanides ($R-N\equiv C$), not nitriles.

So it is incorrect to say both generate nitrile nucleophile with all reaction conditions.

Therefore, Statement II is false.

Choose the correct option

• Statement I: True
• Statement II: False

So the correct option is: $\boxed{\text{D}}$

Compare with stored correct answer

Stored correct answer: D

My derived answer matches the stored answer.