(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Jute is biodegradable, so its bags do not persist in the environment as pollutants, and they can be reused, reducing waste generation — this directly explains why jute bags reduce pollution.
The Reason correctly and completely explains the Assertion: being biodegradable means jute does not cause long-lasting environmental pollution (unlike plastic), and reusability reduces the amount of waste generated. Both statements are true, and R directly causes/explains A, so option (A) is correct, not (B).