Final answer:
The energy exerted when separating balloons is converted into potential and possibly thermal energy, depending on whether the gas inside the balloons is being compressed or expanded.
Step-by-step explanation:
When you do work on the balloons by separating them, the energy you exert is converted into other forms. This energy transfer aligns with the First Law of Thermodynamics, which states that energy cannot be created or destroyed but only changed from one form to another.
If the balloons were stuck together due to static electricity, pulling them apart increases the potential energy of their charges as they move further away from each other. When you separate inflated balloons, the potential energy within the gas inside the balloons may increase because the balloons might tend to contract, and separating them requires working against this elastic contraction. If the separation is done quickly enough and there's significant resistance, there might also be a transformation into thermal energy, heating the balloons slightly. However, the detailed scenario given doesn't specifically tell if the balloons are being heated or cooled down. It mainly depends on whether the gas is being compressed (which can heat the balloon) or allowed to expand (which can cool it down) during this process.