(c) Potential energy, $U = \mathbf{M.B} = - MN\cos\theta$
Here M = magnetic moment of the loop
$\theta =$ angle between M and B
$U$ is maximum when $\theta = 180{^\circ}$ and minimum when $\theta = 0{^\circ}.$ So as $\theta$ decrease from $180{^\circ}\ to\ 0{^\circ}$ its PE also decreases.