Mutual inductance between two coils depends on the extent of magnetic flux linkage between them. When the coils are wound on each other, the magnetic flux linkage is maximum, and hence the mutual inductance is also maximum.
Therefore, both the Assertion (A) and the Reason (R) are true, and Reason (R) correctly explains Assertion (A).
Thus, the correct answer is:
\[
\boxed{\text{Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).}}
\]