Step 1: Recall the BamHI site in pBR322.
The restriction site for BamHI lies within the
\[
\boxed{\mathrm{tet}^R\text{ (tetracycline resistance) gene}.}
\]
Insertion of foreign DNA at this site causes insertional inactivation of the tetracycline resistance gene.
Step 2: Evaluate the assertion.
Since the \(\mathrm{tet}^R\) gene is disrupted,
\[
\boxed{\textit{E. coli} containing the recombinant plasmid cannot grow on tetracycline-containing medium.}
\]
Thus, the assertion is true.
Step 3: Evaluate the reason.
The reason correctly explains why the recombinant bacteria lose tetracycline resistance.
Hence,
\[
\boxed{\text{Both (A) and (R) are true, and (R) is the correct explanation of (A).}}
\]
Therefore, the correct option is
\[
\boxed{(A).}
\]