(D) (A) is false, but (R) is true.
The Assertion is false — increasing current increases the deflection of the compass needle, not decreases it. The Reason is true — magnetic field strength increases with increasing current.
Examiners expect you to identify that the Assertion directly contradicts what Oersted's experiment shows: greater current → stronger magnetic field → greater deflection of the needle. The Reason is a correct statement of the principle. Option (D) is the only choice where R is true and A is false.