The correct option is C increases and decreases, respectively
There are seven obligate categories in taxonomic hierarchy: Kingdom, Phylum or Division, Class, Order, Family, Genus and Species. As we go from Kingdom towards Species, the number of similar characters increases. For example, organisms in a genus will have more common characters than all the organsims in a Kingdom. Also, when we go from Kingdom to Species, the number of organisms decreases. For example, there are far more organisms in the animal kingdom than in a single genera.