Dynamic programming may have many distinct subproblems, but we do not necessarily need to keep all their answers simultaneously.
Consider Edit Distance for two strings of length approximately $n$.
The usual DP table contains $n\times n$ states.
So the number of distinct subproblems is $\Theta(n^2)$
However, when computing one row of the table, we often need only the immediately preceding row.
Therefore, instead of storing the full table, we can keep:
Each row has $\Theta(n)$ entries.
Thus, the space requirement can be reduced to $\Theta(n)$ even though the number of subproblems remains $\Theta(n^2)$
$\therefore \text{Space} < \text{Number of subproblems}$ is entirely possible.
Hence,
$\boxed{\text{Answer: (B) False}}$
