(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
Since the radius is perpendicular to the tangent (Theorem 10.1), it is the shortest distance from the centre to the tangent line, making it the smallest distance.
The key link: a perpendicular from a point to a line is always the shortest distance. Because OP ⊥ XY (Theorem 10.1), OP < OQ for every other point Q on the tangent. So R directly explains A — choose option (A).