Test analysis: From the image, the starting point of both parties is the same. After 1 hour, Party A and Party B are at the same point. During the period from departure to 1 hour, the number of Party A is higher than that of Party B, which means that within 1 hour after departure, Party A is in front of Party B, so ① is correct. Through image observation, the ordinate of this point is one hour 10. Observing the graph, when the time is 2 hours, B has reached the finish line, but A has not yet arrived, so it is wrong for A to reach the finish line before B, so ③ is wrong; Observing the graph, when the time is 2 hours, B has reached the finish line. At this time, the ordinate is 20, so both of them ran 20 kilometers, so ④ is correct. To sum up, ① ② ④ is correct, so C is chosen.

Comments: This question examines the image of the function. To solve this problem, candidates need to observe the function image and get useful information to judge whether it is right or wrong.