The condition for the decomposition to be lossless is that the common attribute(s) between the decomposed relation(s) should be the "key" in at least one of the decomposed relations. Since this is not true for the given decomposition, the decomposition is not lossless.
The dependencies are well preserved as $M\rightarrow N$ is applicable for relation $R_{1}$ and $P\rightarrow Q$ is applicable for relation $R_{2}$ and their union gives original functional dependencies set.
$\therefore$ Option A is correct.