Select the correct option based on statements below:

Assertion (A): Only a small amount of HCI is required in the reduction of nitro compounds with iron scrap and HCI in the presence of steam.
Reason (R): FeCl2 formed gets hydrolyzed to release HCI during the reaction.
  
1. Both (A) and (R) are True and (R) is the correct explanation of (A).
2. Both (A) and (R) are True but (R) is not the correct explanation of (A).
3. (A) is True but (R) is False.
4. Both (A) and (R) are False.