Step 1: Assertion is true. For the same inlet and outlet temperatures of hot and cold fluids, a counter flow arrangement gives a higher log mean temperature difference (LMTD) than a parallel flow arrangement, so a counter flow heat exchanger needs less area for the same heat duty, that is, it is more effective.
Step 2: Reason is false. The overall heat transfer coefficient \(U\) depends on the individual film coefficients, fouling factors, and the wall material and thickness. It does not depend on whether the fluids flow parallel or counter to each other, so \(U\) is essentially the same for both arrangements with the same fluids and flow rates.
Step 3: Since (A) is true and (R) is false, the correct option is 3.