Step 1: Orbit radius
A lower orbit has a smaller radius. The electron is closer to the nucleus, so the attraction is stronger and the PE is more negative.
Step 2: Speed
A smaller orbit means a higher speed, as $v\propto\frac Zn$. So KE rises. Total energy $= K+U = -K$ falls. Statement (B).
Final Answer:
Statement B.
\[ \boxed{\text{(B)}\ \text{KE increases, PE and TE decrease}} \]