The correct option is C Assertion is correct but Reason is incorrect
According to the Lenz's law, a reverse magnetic flux is induced in circuit when the external flux through a coil is varied with time. Hence when bar magnet falls through coil, the magnetic flux inside it increases with time in the downward direction. Hence an anticlockwise current is induced in coil to produce magnetic field in upward direction.
Due to this opposing flux, a retarding force acts on the magnet upwards and thus the acceleration is less than g.