Step 1: Check the Assertion.
Different organisms reproduce in different ways depending on where they live, their internal physiology, and their genetic make up, a fish spawns in water while a mammal nurtures its young internally, so the Assertion is a solid, well accepted biological fact.
Step 2: Check the Reason.
Reproduction exists in every lineage of life precisely because it lets a species continue across generations, so the Reason too states a true and fundamental biological principle.
Step 3: See if the Reason explains the Assertion.
Since species must continue existing, organisms have evolved reproductive strategies best suited to their habitat and physiology, so the drive for continuity is exactly why habitat and physiology shape the mode of reproduction.
Final answer: Option 1, both statements are correct and the Reason correctly explains the Assertion.