The correct option is A Favours backward
Densities of diamond and graphite are 3.5 and 2.3 g/mL respectively. Increase in pressure on the equilibrium favours backward.
Cdiamond⇌Cgraphite
When pressure is increased, the equilibrium will shift towards reverse direction. It is the direction that has higher density. Higher density means lower volume for a fixed mass of water.
Thus, increase in pressure will shift equilibrium towards lower volume.