Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R. 

Assertion (A): Environmental degradation can have adverse effects on the economy.
Reason (R): Environmental degradation leads to increased healthcare costs and reduced agricultural productivity.


In the light of the above statements, choose the most appropriate answer from the options given below:

1
Both the assertion and reason are correct, and the reason is a correct explanation of the assertion. 
2
Both the assertion and reason are correct, but the reason is not a correct explanation of the assertion. 
3
The assertion is correct, but the reason is incorrect. 
4
The assertion is incorrect, but the reason is correct.

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