On immersing the apparatus in a liquid(say water), the wavelength of light decreases.
That is :-
λ'=λ/μ ..............(1)
As fringe width is calculated by:-
β=λD/2d ........(1)
Put value of λ=λ'μ in eq.(1):-
Now:- β'=(λ/μ)*(D/2d)
=β/μ'
That is fringe width decreases and hence becomes 1/μ times of its value in air.