The correct option is E If the assertion is false but reason is true
The apical bud is not the only source of auxins. Young developing leaves also produce auxins and it has been shown that auxins from this source may inhibit lateral bud growth. When the apical bud is removed, the lateral bud sprout. However, if a paste of auxin is painted on the cut end of the decapitated shoot, the lateral buds remain inhibited, as if the apical bud is present.