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.

Diversification of agricultural activities does enhance income stability for farmers, and the reason for this is that it allows farmers to tap into multiple markets and diversify their sources of revenue.

When farmers engage in diversified agricultural activities, such as growing different crops, raising multiple types of livestock, or incorporating non-farm activities like agro-tourism or value-added processing, they are able to distribute their income across different sources. This helps reduce their dependence on a single crop or product, thereby reducing the risks associated with market fluctuations or crop failures.

By diversifying their agricultural activities, farmers can tap into multiple markets, catering to different consumer demands and preferences. This allows them to take advantage of various price cycles and market opportunities. Additionally, diversification can provide a buffer against income variability, as the revenue from one activity may compensate for losses or lower returns in another.

Diversification also helps in managing risks associated with climatic variations, pests, and diseases. For example, if one crop is affected by a disease outbreak, farmers with diversified activities may have other crops or livestock that can offset the losses.

Overall, by diversifying their agricultural activities and tapping into multiple markets, farmers can enhance income stability and reduce their vulnerability to market and production risks.

Therefore, the assertion that diversification of agricultural activities enhances income stability for farmers is true, and the reason that it allows farmers to tap into multiple markets and diversify their sources of revenue is the correct explanation for this assertion.