The correct option is B Decreases
RBCs are produced by the process of erythropoesis. The kidney monitors the level of oxygen in the blood. If oxygen levels are low, then the kidney secretes a hormone called erythropoetin. This erythropoetin stimulates the production of erythrocytes in the bone marrow. During sleep, the demand of oxygen is low in the body. Hence, the rate of formation of RBCs is also low during the sleep.
Thus, the correct answer is option (B), 'Decreases'.