The correct statement is indeed The potential energy decreases and kinetic energy increases.
When a body falls freely from a height, its potential energy (PE) decreases as it loses height, and its kinetic energy (KE) increases as it gains speed.
The law of conservation of energy states that the total energy of a closed system remains constant. In this case, the decrease in potential energy is converted into an increase in kinetic energy.
As the body falls, its potential energy (PE = mgh, where m is the mass, g is the acceleration due to gravity, and h is the height) decreases, and its kinetic energy (KE = 1/2 mv², where v is the velocity) increases.
