Step 1: Concept
Karl Fischer titration is the standard method for determining water content in a sample.
Step 2: Meaning
The reagent typically consists of Iodine ($I_2$), Sulfur dioxide ($SO_2$), a base (originally Pyridine), and an alcohol.
Step 3: Analysis
Assertion A is correct: Pyridine is used to neutralize the acids produced during the reaction. Reason R is also correct: Pyridine forms an intermediate complex with $SO_2$ and $I_2$, which then reacts with water. This complex formation is essential for the reaction to proceed quantitatively.
Step 4: Conclusion
Both statements are true, and the formation of the complex explains why pyridine is used.
Final Answer: (A)