The correct option is C Assertion is correct but Reason is incorrect
Option (C) is correct.
N≡N→O is more stable due to lesser formal charge on N-atom.
They're resonance structures but the one with the negative charge on the oxygen is more favorable because oxygen is a highly electronegative atom, and is more electronegative than nitrogen.It likes electrons more than nitrogen. Therefore, N≡N→O is more favorable and stable.