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Both the Assertion (A) and the Reason (R) are individually true in this case.
The Government of India Act, 1919, also known as the Montague-Chelmsford Reforms, was indeed passed by the British Parliament. The primary objective of this act was to introduce the concept of `Diarchy` in the provincial government.
The Reason (R) is also correct as the Montague-Chelmsford Reforms Committee did recommend the introduction of `Diarchy` in the provincial government.
`Diarchy` refers to a system of dual governance, where power is divided between elected Indian ministers and British-appointed bureaucrats. Under this act, subjects were divided into two categories - transferred subjects, which were under the control of the elected ministers, and reserved subjects, which remained under the control of the British-appointed Governor and his executive council.
In conclusion, both the Assertion and the Reason are correct, and the Reason does adequately explain the Assertion. Therefore, option 1 is the correct answer.