Step 1: Analyze Assertion (A).
Finely divided charcoal is a well-known adsorbent.
Adsorption is a surface phenomenon in which molecules of a gas or solute accumulate on the surface of a solid.
Charcoal possesses a highly porous structure and a very large surface area. Therefore, it can adsorb large quantities of gases and dissolved substances.
Hence,
Assertion (A) is correct.
Step 2: Analyze Reason (R).
The reason states that finely divided material has small surface area.
This statement is incorrect.
When a substance is finely divided, its surface area increases significantly because the same mass is broken into a large number of smaller particles.
Therefore,
Finely divided material has large surface area, not small surface area.
Hence,
Reason (R) is incorrect.
Step 3: Relate adsorption with surface area.
Adsorption increases with increase in surface area.
Since finely divided charcoal has a very large surface area, it acts as an effective adsorbent.
Thus, the assertion is true, but the reason is false.
Step 4: Final conclusion.
Therefore,
\[
\boxed{\text{(A) is correct but (R) is incorrect}}
\]
Hence, the correct option is
\[
\boxed{(3)}
\]