Option 1: Both the assertion and reason are correct, and the reason accurately explains the assertion, suggesting poverty line challenges directly influence per capita income. Although it`s correct that population living below the poverty line affects national income, it does not entirely explain the lack of improvement in per capita income.

Option 2: This is the correct answer. Both assertion and reason are true, but the reason doesn’t explain the assertion completely. While the poverty does have an impact, other factors such as income inequality, population growth, and economic policies also influence per capita income.

Option 3: This suggests that the assertion is true, yet the reason is false. This option is not correct because the statement about a sizeable population of India living below the poverty line is true.

Option 4: This implies the assertion is false, but the reason is true. However, it is incorrect because both the assertion and reason are true; even though the national income has increased from 1947, there hasn’t been significant improvement in per capita income due to various reasons including poverty.