The correct option is B decreases
In forward biasing, the p-type is connected with the positive terminal and the n-type is connected with negative terminal of the battery. Because of this, the holes in p-type region and the electrons in n-type region are pushed towards the junction which reduces the width of the depletion layer. Moreover the distance between the diffused holes and electrons decreases which results in decrease in electric field in depletion region. Hence, the potential barrier decreases.