The correct option is B Decreases
Gravitational potential at any point P outside the shell:
V=−GMr
Where,
r= distance of point P from centre
M= Mass of shell
At, r≤R, where R= Radius of shell
This gived us the potential at the centre
V=−GMR
Here, M= Constant
Now when the shell starts sinking, the value of R is decreasing. Hence the gravitational potential decrease.