The correct option is C Loss of potential energy converts into kinetic energy.
Let the viscous force be fv.
As the ball moves with constant terminal speed, acceleration of the ball is zero.
∴Fnet=0 and
Fnet=mg−fv
⇒mg=fv
Also, the net power supplied to the ball is zero.
i.e., Pnet=0
⇒(mg−fv)V0=0
⇒mgV0=fvV0
∴Rate of loss of potential energy = Power supplied by viscous force.
Hence options a, b and d are correct.
The kinetic energy of the ball is not changing, because its speed is constant, hence option c is wrong.