The correct option is B Assertion is wrong but reason is correct.
A micelle is an aggregate of surfactant molecules dispersed in a liquid colloid.
When surfactants are present above critical micelle concentration, they can act as emulsifiers that will allow a compound that is normally insoluble (in the solvent being used) to dissolve. This occurs because the insoluble species can be incorporated into the micelle core, which is itself solubilized in the bulk solvent by virtue of the head groups favorable interactions with solvent species.
In colloidal, critical micelle concentration (CMC) is the concentration of surfactants above which micelles form and all additional surfactants added to the system go to micelles.