Concept:
Carbon monoxide present in cigarette smoke binds strongly with haemoglobin and reduces oxygen transport.
Step 1: Analyse the Assertion.
Smoking introduces carbon monoxide into blood.
This decreases oxygen carrying capacity.
Hence,
\[
\boxed{\text{Assertion is True}}
\]
Step 2: Analyse the Reason.
Carbon monoxide combines with haemoglobin.
\[
Hb + CO \rightarrow HbCO
\]
where HbCO denotes carboxyhaemoglobin.
Hence,
\[
\boxed{\text{Reason is True}}
\]
Step 3: Check the explanation.
Because haemoglobin becomes occupied by CO, oxygen transport decreases.
Thus the reason directly explains the assertion.
\[
\boxed{\text{Option (A)}}
\]