Both. Or neither.

You are generally told the former by someone who wants you to do something you'd rather not, and the latter by that same person when things don't work out the way he promised you they would.

It's a trick question, like Nature or Nurture, Inheritance or Environment, Genetics or Upbringing. Life is a game, but its not purely a game of skill, like chess, or a game of luck, like roulette. It's more like backgammon or poker, skill is important but the roll of the dice or the luck of the draw can make or break you, too.

Working hard and smart (Option One) generally adds up in your favor in the long run. And the effects of good and bad luck do tend to cancel out in the long run too, so Option One seems to be the case most of the time, especially if you play the game for a long time. But eventually, Option Two eats your lunch no matter how good or smart or lucky you are.

Life's a bitch, and in the middle of it comes the smiling mortician.