Step 1: Mulched soils retain more moisture than bare soils, so Assertion is true.
Step 2: Mulch blocks solar radiation and reduces evaporation, so Reason is true.
Step 3: Reduced evaporation is exactly why moisture is conserved, so the reason explains the assertion.
Step 4: Correct answer, both (A) and (R) are true and (R) is the correct explanation of (A).