Correct answer is (b) True
Explanation: The boundary layer regime over flow has dissipative effects and viscosity. This is not isentropic. But the flow outside has negligible viscosity, dissipative effects. Thus, it is a reversible process to a good approximation. Moreover, there is no heat exchange taking place to or from the fluid element, making this an adiabatic flow. So, outside the boundary layer, the flow is isentropic.