Answer:
The right answer is option A: The outlet temperature of the cold stream decreases and the outlet temperature of the hot stream increases.
Step-by-step explanation:
In a heat exchanger, when the exchange area is reduced, and at the same condition for the rest of the variables, the amount of heat exchanged by the two fluids is reduced.
In the case of the hot fluid, it will rise at a higher temperature, compared to the temperature at which it would come out with a larger exchange area.
In the case of the hot fluid, it will come out at a lower temperature, compared to the temperature at which it would come out with a larger exchange area.
The correct answer is option A.