Assertion (A) In the beginning, the East India Company was only a trading body.

Reason (R) Gradually, it acquired territories in India and became a sovereign authority.

In the context of the above two statements, which one of the following is/are correct?

1
Both A and R are true and R is the correct explanation of A
2
Both A and R are true but R is not the correct explanation of A
3
A is true but R is false
4
A is false but R is true

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