Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Dairying does contribute to the rural economy through value addition, and the reason for this is that it involves the processing of milk into various products like butter, cheese, and yogurt.

Dairying involves not only the production of milk but also the processing of milk into different value-added products. These value-added products have a higher market value compared to raw milk, leading to increased income for dairy farmers and rural communities.

By processing milk into products like butter, cheese, yogurt, ice cream, and other dairy-based products, dairying adds value to the raw milk and expands the range of products available for consumers. Value addition in the dairy sector creates employment opportunities in various stages of production, including processing, packaging, marketing, and distribution.

Value-added dairy products also have a longer shelf life compared to raw milk, allowing for storage, transportation, and export, which further contributes to the economic growth of rural areas.

Therefore, the assertion that dairying contributes to the rural economy through value addition is true, and the reason that it involves the processing of milk into various products like butter, cheese, and yogurt is the correct explanation for this assertion.