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 adequate healthcare services. Human capital formation refers to the process of developing and improving the knowledge, skills, and health of individuals, which contributes to their productivity and economic potential. The reason provided is that good health is crucial for individuals to reach their full potential and contribute effectively to the economy. This is true because when individuals are in good health, they are more likely to have the physical and mental capacity to engage in educational pursuits, skill development, and productive work. Access to healthcare services plays a vital role in maintaining and improving individuals' health, which in turn supports their human capital formation. Therefore, both the assertion and the reason are true, and the reason correctly explains the assertion.