Correct choice is (a) True
For explanation I would say: The parameters of the system must necessarily be represented with finite precision. The computations that are performed in the process of computing an output from the system must be rounded off or truncated to fit within the limited precision constraints of the computer or hardware used in the implementation. Thus, Finite word length effects refer to the quantization effects that are inherent in any digital implementation of the system, either in hardware or software.