Step 1: Analyze the assertion.
  
Assertion A: "Physical or human factors are not static but highly dynamic. They change over time." This is correct. Physical and human factors (such as climate, population, and technology) are constantly evolving and changing.
Step 2: Analyze the reasoning.
  
Reasoning R: "The earth is dynamic. We find there are variations in its physical and cultural environments." This is also correct, as the earth and its human and physical environments change over time due to natural processes and human activities.
Step 3: Determine the relationship.
  
- Both A and R are correct, and the reasoning explains the assertion effectively. The earth’s dynamism leads to changes in both the physical and human environments, which supports the assertion that these factors are not static.
 
 Final Answer:  
The correct answer is (C) Both A and R are correct and R is the correct explanation of A.