Statement (1) is insufficient. If x^3 is less than 1, there are multiple possibilities to consider. Either x is positive and less than 1, or x is negative. Consider those possibilities in light of the question:

If x is positive and less than 1, the relationship between x, x^2, and x^3 will always be the same, so use x = 1/2 as an example. If x = 1/2, x^3 = 1/8, so x^3 is less than x.

If x is negative and greater than -1, again, the relationship between x, x^2, and x^3 will always be the same. Use x = -1/2. If x = -1/2, then x^3 = -1/8. In this case, x^3 is greater than x, so there are multiple answers to the question.

Statement (2) is insufficient as well. In fact, the work we've already done shows this. If x is greater than -1, it could be either -1/2 or 1/2. As we've seen, if x = -1/2, x is less than x^3. If x = 1/2, x is greater than x^3.

Taken together, the statements are still insufficient. They tell us that x and x^3 are between -1 and 1, but we've seen that the relationship between x and x^3 changes depending on whether the value of x is positive or negative. Choice (E) is correct.