Step 1: Check the assertion first. For the same inlet and outlet temperatures, a counter flow heat exchanger really does transfer more heat, or needs a smaller area for the same duty, than a parallel flow one. So Assertion (A) is true.
Step 2: Now check the reason. The overall heat transfer coefficient U depends on the individual film convective coefficients of the two fluids, the wall material and thickness, and any fouling on the surfaces. None of these change just because we switch the flow arrangement from parallel to counter flow. So U is not what makes counter flow better.
Step 3: The real reason counter flow is more effective is that it keeps the temperature difference between the hot and cold streams more uniform along the length of the exchanger. This gives a higher log mean temperature difference (LMTD) for the same inlet and outlet temperatures, which lets more heat pass for the same U and area.
Step 4: So Reason (R), as written, wrongly credits the improvement to a change in U. That statement is false.
Step 5: Since (A) is true and (R) is false, the correct choice is option 3.