The correct option is C Assertion is correct but Reason is incorrect
It is due to the different wavelengths of light.
The red light wavelenghts are diffracted the least by the atmosphere. When the Sun is setting, the angle of the Sun to us becomes more and more shallow, so we see more of the wavelengths that were not diffracted much. This explains why the Sun gradually changes from yellow, becoming more and more orange before turning red.
The amount of scattered light is inversely proportional to the fourth power of light wavelength
i.e. I∝1λ4