The correct option is B Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion.
The concept of circulatory system exists in multicellular eukaryotes. Bacteria and protists are unicellular and can easily exchange gases, nutrients and excrete metabolic wastes either by active or passive transport through their membrane systems. Bacteria have transporters, porins and osmoprotectants and protists usually have contractile vacuoles for facilitating these processes.
So, the correct answer is option B.