The correct answer is:
0.2% (decrease)
Step-by-step explanation:The observed frequency can be found by using the following equation:

--- (1)
Where

= Speed of the observer = 200 *1000 m/s
V = speed of the star = 400 *1000 m/s
Plug in the values in (1):
(1) =>


--- (2)
Change in frequency is given as:

% --- (3)
Put (2) in (3):

%
=> -0.2%
Negative sign shows that it decreases!
Hence it is
0.2% (decrease).