The correct option is B Water potential increases
Water Potential is the difference in the free energy or chemical potential per unit molar volume of water in system and that of pure water at the same temperature and pressure.Water potential (Ψ) = pressure potential (Ψp) + solute potential (Ψs). A decrease in solute concentration in guard cells will cause decrease in solute potential and thus, an increase in the water potential. Thus the correct answer is option A.