Bonds are broken and new bonds are formed during chemical reactions only.
Explanation:
A physical change in a substance doesn't change what the substance is.
In a chemical change where there is a chemical reaction, a new substance is formed and energy is either given off or absorbed.
Physical changes can be reversed, chemical changes cannot be reversed with the substance changed back without extraordinary means, if at all. For example, a cup of water can be frozen when cooled and then can be returned to a liquid form when heated.
So, the right choice is:
Bonds are broken and new bonds are formed during chemical reactions only.
Sugar dissolution in water is a physical change and not a chemical change because, when sugar is mixed in water, the water molecules break down the sugar molecules so, as a result sugar changes it's shape and gets dissolved in the water attaching the chain bonding between them.