The correct option is A The moment of inertia of the system increases
The moment of inertia of a system of particles is given by the formula,
I=m1r21+m2r22+...+...mnr2n
Where, m and r are the mass and (⊥) distance of particles from the axis of rotation.
n is the number of particles in the system.
Hence when the distance from the axis of rotation increases, the moment of inertia of the system of particles increases.
The correct option is (a).