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.

The assertion states that human capital formation requires a conducive policy environment. Human capital formation refers to the process of acquiring and developing knowledge, skills, and competencies in individuals. The reason provided is that well-designed policies and strategies enable individuals to acquire and develop relevant skills and knowledge. This is true because the policy environment plays a crucial role in shaping the education system, vocational training programs, and other initiatives that contribute to human capital development. Policies can influence access to education, funding for research and development, support for lifelong learning, and other factors that affect the acquisition and utilization of human capital. A conducive policy environment can provide the necessary infrastructure, resources, incentives, and support systems to facilitate human capital formation at individual and societal levels. Therefore, both the assertion and the reason are true, and the reason correctly explains the assertion.