Step 1: Analyze the assertion.
In electrolysis of aqueous NaCl (brine), at anode both \( Cl^- \) and water can be oxidized.
However, \( Cl_2 \) is liberated preferentially instead of \( O_2 \).
At cathode, water is reduced to form \( H_2 \).
Thus, the assertion is correct.
Step 2: Understand anodic reactions.
Possible anodic reactions:
\[
2Cl^- \rightarrow Cl_2 + 2e^-
\]
\[
2H_2O \rightarrow O_2 + 4H^+ + 4e^-
\]
Step 3: Compare standard potentials.
Thermodynamically, oxidation of water to oxygen should be easier.
But practically, it does not occur readily.
Step 4: Role of overpotential.
Oxygen evolution has high overpotential.
This makes oxidation of water kinetically unfavorable.
Step 5: Preference of reaction.
Due to high overpotential of oxygen, \( Cl^- \) oxidation is preferred.
Step 6: Evaluate reason.
The reason correctly explains why lower oxidation potential reaction is not preferred.
Step 7: Final conclusion.
Both Assertion and Reason are correct.
\[
\boxed{\text{Both Assertion and Reason are correct}}
\]