Assertion : Archaebacteria are more similar to eukaryotes rather than eubacteria. Reason : Archaea genome is more similar to eukaryotic genome rather than bacterial genome.

Step-by-step solution

Archaea superficially resemble bacteria in terms of size and cellular organisation. However, they are surprisingly similar to eukaryotes at the molecular level. For instance all Archaea replicate their DNA and synthesise proteins using molecular machines like those of eukaryotes. In Archaea and eukaryotes, larger genomes contain a greater proportion of intergenic material and genome size appears to correlate negatively with the strength of selection.