The correct option is A Both the statements A and B are correct
∙ Differentiation is a process by which cells take up specific shape, size and function.
∙ Meristematic tissue is a group of actively dividing cells.
∙ Meristematic tissue differentiates, lose their ability to divide after they take up a specific role to form a permanent tissue.
So, in the given context both the statements A and B are correct.