Option 1 suggests that both the claim that India doesn`t export natural rubber and the fact that about 97% of India’s demand for natural rubber is met from domestic production are true, and that the latter explains the former. However, this is incorrect as the fact that India meets most of its natural rubber demand from domestic production doesn`t necessarily mean it does not export it.

Option 2, the correct answer, also has both statements as true, however, it posits that one does not serve as an explanation for the other. This is accurate as these two facts don`t have a causal relationship.

Option 3 suggests that India does not export natural rubber is true but the reason that India meets 97% of its natural rubber demand domestically is false, which is incorrect on the basis of the second statement.

Option 4 claims that the assertion that India does not export natural rubber is false, but the reason (R) is true. This is incorrect as both statements are true.