The correct option is D Both Assertion and Reason are incorrect.
The collateral bundle is a collection of conducting tissues (xylem and phloem) in the stems and leaves of plants. In stems, phloem is present on the exterior side of the collateral bundle, while the xylem is towards the interior. Further collateral bundles can be either open or closed. The closed collateral bundles do not contain cambium and hence lack secondary growth as is seen in all monocotyledonous plants. However, in dicotyledonous plants, gymnosperms and pteridophytes, a layer of cambium cells are present between the xylem and phloem paving way for secondary growth. Thus, the correct answer is option D.