Hi @chaithra,
I think @huard is on the right track here. These variables seem to be on different grid positions (cell face vs center). Remapping would probably work, but is expensive. You could also try to use xgcm to interpolate between grid positions. But to verify the assumption I would suggest to check that the lat/lon values of one variable are captured by the lat_bounds/lon_bounds of the other. If true I would assume that no additional interpolation was carried out and the variables are simply output on different grid positions. A simple linear interpolation on the logically rectangular grid could thus be a good way to co-locate the variables.
On a more general note this sort of thing is (to my knowledge) totally undocumented for CMIP data, which is pretty bad, since it leaves the detective work to the user!