Final answer:
COPD is the respiratory disease known to increase dead space volume due to reduced alveoli elasticity and number, leading to inefficient gas exchange.
Step-by-step explanation:
The correct answer is B) Chronic Obstructive Pulmonary Disease (COPD). COPD is a respiratory disease characterized by chronic poor airflow, which causes shortness of breath and a productive cough. In COPD, the alveoli are reduced in number and elasticity, making it impossible to fully exhale air from the lungs. This results in increased dead space volume, as the alveoli are unable to efficiently exchange gases.