The correct option is
C r will decrease and
v will increase
This problem is based on the topic of Binding Energy of Satellite
∙ The Universal Constant of Gravitation is denoted by G, the mass of earth by M and the mass of the satellite by m.
∙ The potential energy P.E. of a satellite is given by the formula P.E.=−GMmr
Here the negative sign indicates that the satellite is bound to earth due to the force of attraction of gravity.
∙ The speed of the satellite is given by v=√GMr
Now look at the formula for P.E. carefully.
m cannot change unless something goes wrong with the satellite.
r is the only quantity which can change.
P.E. is decreasing means the denominator r should increase. However, due to the minus sign, vice-versa will happen.
So r will decrease.
Now look at the formula for v.
The r is decreasing means v will increase.