Step 1: Understand the assertion-reason format.
We first check if the Assertion is true, then if the Reason is true, and finally whether the Reason correctly explains the Assertion.
Step 2: Check the Assertion.
An azeotrope is a constant boiling mixture. Its components cannot be separated by fractional distillation. So the Assertion is TRUE.
Step 3: Check the Reason.
In an azeotrope the liquid and the vapour have the same composition, and the mixture boils at a constant temperature. This statement is also TRUE.
Step 4: See if the Reason explains the Assertion.
Fractional distillation works only when the vapour has a different composition from the liquid. Since an azeotrope has identical vapour and liquid composition, separation is impossible. So the Reason is exactly why the Assertion holds.
Step 5: Conclude.
Both A and R are true and R is the correct explanation of A. This is option 1.
\[ \boxed{\text{Both A and R true; R is the correct explanation of A}} \]