The correct option is D increases by 10KJ
As per the sign convention, the heat absorbed by the system has positive sign. Hence, q=+20kJ
When work is done by the system on the surroundings, it has a negative sign.
Thus, w=−10kJ
The expression for the change in the internal energy is ΔE=q+w=20kJ−10kJ=10kJ
Thus, the net internal energy of the system increases by 10KJ.