The y-intercept will increase because the point pulls the least-squares regression line toward it. Hence the correct option is c.
The circled point, representing a student with a handspan of 23 cm who grabbed 38 pretzels, has an influential effect on the y-intercept. In linear regression, the y-intercept is the value of the dependent variable (number of pretzels grabbed) when the independent variable (handspan) is zero.
As this particular point deviates from the overall trend, it exerts influence, causing the least-squares regression line to adjust. In this case, the y-intercept increases, reflecting the impact of the extreme data point, suggesting that, with a handspan of zero, the predicted number of pretzels grabbed is higher due to the influence of this specific observation. Hence the correct option is c.