The following example follows law of conservation of momentum. Is the statement true or false?

The correct answer is: True

Conservation of momentum states that the total momentum of an isolated system remains the same in the absence of an external force, i.e., the momentum can neither be created nor be destroyed, however, it can be changed through the action of forces as described by Newton's laws of motion.
Newton's third law states that for a force applied by an object A on object B, object B exerts back an equal force in magnitude, but opposite in direction. This idea was used by Newton to derive the law of conservation of momentum.