Concept:
The figure of merit of a differential amplifier is CMRR (Common Mode Rejection Ratio), which measures the ability to reject common-mode signals, not differential signals.
Step 1: Analyze Assertion
Assertion states rejection of differential signal → this is incorrect.
A differential amplifier is designed to amplify differential signals, not reject them.
\[
\Rightarrow \text{Assertion is FALSE}
\]
Step 2: Analyze Reason
Ideal CMRR:
\[
\text{CMRR} = \frac{A_d}{A_c} \rightarrow \infty
\]
This means perfect rejection of common-mode signal.
\[
\Rightarrow \text{Reason is TRUE}
\]
\[
\therefore \text{Correct answer is (D)}
\]