The correct option is C Assertion is correct but Reason is incorrect
Nitrous oxide (N2O) (often referred to as just "nitrous") allows the engine to burn more fuel by providing more oxygen than air alone, resulting in a more powerful combustion. The gas itself is not flammable at a low pressure/temperature, but it delivers more oxygen than atmospheric air by breaking down at elevated temperatures. Nitrous oxide supports combustion by releasing the dipolar bonded oxygen radical.
Nitrogen is a component of air that does not support combustion is given by Rutherford in 1772.
Oxygen itself is not the fuel, but the oxidant. Fire hazards exist when concentrated oxidants and fuels are brought into close proximity; however, an ignition event, such as heat or a spark, is needed to trigger combustion.
Therefore assertion is correct but reason is not correct.
Thus Option C is correct.