Step 1: Trace what niacin does at each lipase. By blocking hormone-sensitive lipase inside fat cells it cuts the release of free fatty acids, starving the liver of the substrate it needs to build triglyceride and VLDL. At the same time it boosts lipoprotein lipase, which speeds the breakdown of circulating VLDL triglyceride.
Step 2: The standout benefit is on the protective lipoprotein. Niacin lifts HDL more than any other agent by interfering with apo-A1 driven hepatic uptake of HDL, so HDL stays higher in the blood. Hence raising HDL is the true statement.
Step 3: Checking the rest against these mechanisms: triglyceride synthesis falls rather than rises, VLDL hydrolysis is enhanced rather than reduced, and the clinical use spans types I, III, IV and V, not type II selectively. All three are therefore wrong.
\[\boxed{\text{Increases HDL}}\]