The correct option is C Assertion is correct but Reason is incorrect
An air bubble which is a convex lens by nature, inverts its nature when placed in a medium of higher refractive index that is water, so it diverges light.
However, a diverging lens is defined as a lens that has an ability to diverge rays of light that were initially parallel to principal axis, before refraction.
Thus, Statement - 1 is true while statement - 2 is false