Step 1: Analyze Assertion (A).
Magnesium sulphate \((MgSO_4)\) is soluble in water.
This is because water molecules strongly hydrate the ions formed during dissolution.
Hence, Assertion (A) is correct.
Step 2: Analyze Reason (R).
The \(Mg^{2+}\) ion is small in size and possesses high charge density.
Therefore, it has very high hydration enthalpy.
During dissolution, the hydration enthalpy released by water molecules surrounding \(Mg^{2+}\) ions helps to overcome the lattice enthalpy of \(MgSO_4\).
Thus, the salt dissolves readily in water.
Hence, Reason (R) is also correct.
Step 3: Check whether the reason explains the assertion.
The reason directly explains why \(MgSO_4\) dissolves in water.
Greater hydration enthalpy compensates for lattice enthalpy, favoring dissolution.
Therefore, R is the correct explanation of A.
Step 4: Final conclusion.
Hence, the correct statement is
\[
\boxed{\text{A and R both are correct and R is the correct explanation of A}}
\]