There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion: Both forms of capital i.e. Physical and Human, depreciate with time but the nature of depreciation differs between the two. 
Reasoning: In the case of human capital, depreciation takes place with ageing and can't be reduced.

Assertion (A) is true but Reasoning (R) is not correct.

The correct answer is option 3: Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A): "Both forms of capital i.e. Physical and Human, depreciate with time but the nature of depreciation differs between the two." This statement is generally true. Physical capital (like machinery and equipment) depreciates due to wear and tear, obsolescence, etc., while human capital (skills, knowledge) can also depreciate over time, particularly with aging or outdated skills.

Reasoning (R): "In the case of human capital, depreciation takes place with aging and can't be reduced."This reasoning is false. Human capital can depreciate with age or outdated skills, but the impact can be mitigated through continuous learning and skill development. So, the nature of depreciation in human capital is not entirely unavoidable.