There is a cellular level of body organisation as there are only different types of cells present in the body of sponges without organisation into tissues. Hence, the assertion is true.
The condition of division of labour exists because of the presence of different types of cells performing different functions that complement one another helping in the survival of sponges. But the division of labour is not the reason behind sponges having a cellular level of organisation. The statement given as the reason is true, but it does not justify the assertion.