The correct option is A A is not correct but R is correct.
For the screw gauge, the least count (LC) is given by the following formula,
Least Count=Pitchtotal division on circular scale
In 5 revolution, distance travel, 5 mm
So, 1 revolution, it will travel 1 mm.
Therefore, least count of screw gauge will be,
LC=150=0.02 mm=0.002 cm
It means the mentioned reason is correct, but the assertion is incorrect for the same.
Therefore option (A) is correct.