The correct option is C OMC decreases but maximum dry density increases
The effect of increasing the amount of compactive effort is to increase the maximum dry density and to decrease the optimum water content. At a water content less than the optimum, the effect of increased compaction is more predominant. At a water content more than the optimum, the volume of air voids becomes almost constant and the effect of increased compaction is not significant.
But, the maximum dry density does not go on increasing with an increase in the compactive effort.