Final answer:
Modifying a PWC's exhaust system can lead to an increase in noise, which might rise to an illegal level, violating noise regulations.
Step-by-step explanation:
When you modify a PWC's (Personal Water Craft's) exhaust system, one potential outcome is that the noise produced by the PWC could be increased. If this noise exceeds certain legal limits, it can result in the PWC being in violation of local noise ordinances or environmental regulations. So, the correct answer is d) Noise may be increased to an illegal level. Modifying the exhaust system on a PWC does not inherently cause the PWC to ride higher in the water, carry additional passengers, or improve wake-jumping performance. Those characteristics are typically influenced by the hull design, weight capacity, and propulsion system rather than the exhaust system.