Solution:
We have been given,Three points A, B and C are such that AB - BC = AC.
The slopes of lines connecting any two collinear points are equal, indicating that the three points are on a straight line.
If and only if AB + BC = AC, the points A, B, and C are said to be collinear.
Therefore, the claim is untrue. The collinear points are located on a straight line, as was already mentioned.
Which suggests that the explanation is accurate.
Therefore, the assertion is incorrect but the reason is correct.
Hence, option 4 is correct.