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Option 1 states that both the assertion and reason are true and that the reason is the right explanation for the assertion. The assertion posits that the USA has threatened to prompt the WTO to impose sanctions against developing nations who fail to observe ILO conventions. The reason explains that the USA itself has adopted and implemented these ILO conventions. Thus, the USA feels that if it can implement these conventions, developing countries should be pushed to observe them too.
Option 2 also suggests both situations are true but asserts that the reason is not linked to the assertion. Option 3 implies that only the assertion is true while the reason is inaccurate. Option 4 indicates that the assertion is untrue while the reason is accurate. In this case, option 1 is correct as both assertion and reason are interconnected and authentic.