The correct option that explains why an amino acid can act as both an acid and a base is:
"It contains both an amino functional group and a carboxyl functional group. In a solution, the amino group can decrease acidity, while the carboxyl group can increase acidity."
In this context, the amino group (-NH2) acts as a base by accepting protons (H+), thus decreasing acidity, while the carboxyl group (-COOH) can donate protons, thereby increasing acidity.