Actually, the correct statement related to water's high heat capacity is number 1: "Allows large bodies of water to moderate local climates." Water's high heat capacity means it can absorb and store a significant amount of heat without a large change in temperature, which helps to regulate temperatures in the surrounding environment.
Number 2 is incorrect because water actually heats and cools more slowly than land due to its high heat capacity. If you have further questions or need clarification, feel free to ask!