The correct answer is: False.
Stratus clouds are low, uniform, gray clouds that form when warm, moist air rises slowly and spreads out. They are typically associated with overcast skies and light drizzle or snow. Convection is the upward movement of warm air and the downward movement of cool air. Stratus clouds do not form by convection.
Option A is incorrect because stratus clouds are not typically puffy. They are typically low, uniform, gray clouds.
Option B is correct because stratus clouds do not form by convection. They form when warm, moist air rises slowly and spreads out.