Which statement is true?

Option A is correct. The assertion status can be set for a named top-level class and any nested classes contained therein. This setting takes precedence over the class loader's default assertion status, and over any applicable per-package default. If the named class is not a top-level class, the change of status will have no effect on the actual assertion status of any class.

Option B is wrong. Is there such a thing as conditional compilation in Java?

Option C is wrong. For private methods - yes. But do not use assertions to check the parameters of a public method. An assert is inappropriate in public methods because the method guarantees that it will always enforce the argument checks. A public method must check its arguments whether or not assertions are enabled. Further, the assert construct does not throw an exception of the specified type. It can throw only an AssertionError.

Option D is wrong. Because you're never supposed to handle an assertion failure. That means don't catch it with a catch clause and attempt to recover.