Step 1: Concept
Bacillus thuringiensis (Bt) produces insecticidal proteins that exist as inactive protoxins.
Step 2: Meaning
The bacterium itself is safe because the toxin is not in its active form inside the cell.
Step 3: Analysis
When an insect ingests the Bt crystals, the highly alkaline environment of its midgut solubilizes the crystals and converts the protoxin into its active, lethal form.
Step 4: Conclusion
Assertion A is true, and Reason R explains the mechanism of activation that makes it selective to insects.
Final Answer: (A)