Assertion (A) is FALSE: displacement current has exactly the same physical effects as conduction current — in particular, it produces a magnetic field just like conduction current does; this is precisely why Maxwell introduced it.

Reason (R) is TRUE: the concept of displacement current was introduced by Maxwell to make Ampere's circuital law logically consistent (satisfy the continuity of current) in situations such as a charging capacitor, where conduction current is discontinuous.

Answer: A is false but R is true.