Step 1: Think of a physical picture:
Conductivity depends on how many ions sit in 1 cm$^3$. Adding water spreads the same ions over a bigger volume, so $k$ falls.
Step 2: Think of per-mole behaviour:
Molar conductivity measures conduction per mole of electrolyte. On dilution, inter-ionic attractions weaken and (for weak electrolytes) more molecules ionise, so each mole conducts better.
Step 3: Pick:
$\Lambda$ increases and $k$ decreases, which is option C.
Final Answer:
More dilution means a lower k but a higher molar conductivity.
\[ \boxed{\text{(C) }\Lambda\ \text{increases and}\ k\ \text{decreases}} \]