Which is a true statement concerning the transition state of an $S_N2$ reaction?

The conversion of ethyl bromide to ethyl iodide using sodium iodide and dry acetone is known as:

What is the product $P$ obtained in the following reaction? $CH_3CH_2Br + AgCN_{(alc)} \rightarrow P$

The major product $(A)$ is:

Given below are two statements:
Statement $I$: $(Et)_2N-CH_2CH_2Cl$ will undergo alkaline hydrolysis at a faster rate than $(Et)_2CH-CH_2CH_2Cl$.
Statement $II$: Intramolecular substitution takes place first by involving the lone pair of electrons on nitrogen.
In the light of the above statements,choose the most appropriate answer from the options given below:

Select the reagent that will yield the greater amount of substitution on reaction with $CH_3CH_2Br$.