Final answer:
The molecular effects of eddy currents include an increase in kinetic energy, friction between molecules, and microstreaming, but not cavitation. These currents cause magnetic damping as they convert motion into heat.
Step-by-step explanation:
The molecular effects of eddy currents induced by diathermy's magnetic field include an increase in kinetic energy, friction between rotating dipole molecules due to the eddy currents causing the molecules to move and align with the changing magnetic field, and microstreaming as a product of microscopic fluid flow induced by the oscillating magnetic field.
However, cavitation is not typically a result of eddy currents but can occur with high-intensity focused ultrasound. Eddy currents are loops of electrical current induced in conductors by a changing magnetic field, leading to magnetic damping due to the energy conversion from the conductor's motion into heat.