Which two statement correctly describe checked exception?

Checked exceptions represent conditions that a robust application should foresee and include logic to either handle or gracefully recover from, such as `IOException` or `SQLException`.

While some exceptional conditions might be external (e.g., file not found), the description "external to the application" is not the defining characteristic of a checked exception; rather, it's about the requirement for compile-time handling.

This description is too vague and doesn't capture the key characteristic of checked exceptions requiring compile-time handling or the type hierarchy.

This statement is incorrect because subclasses of `RuntimeException` and `Error` are explicitly classified as unchecked exceptions, not checked exceptions.

In Java, checked exceptions are defined as any class that directly or indirectly extends `java.lang.Exception`, with the specific exclusion of `RuntimeException` and its descendant classes, as well as `Error` and its descendants.