• Before the balloon was placed inside the hot water, the pressure was the same inside and outside the balloon. The hot water raised the kinetic energy of the air molecules inside the balloon, expanding the balloon, through thermal expansion.
• (1) the pressure of air inside the balloon increased, (2) the volume of the inside of the balloon increased as well, and (3) the temperature of the balloon increased. Note that pressure and volume are inversely proportional, and pressure and temperature are directly proportional. Therefore as the temperature increases, the pressure inside will increase, causing an increase in the volume. At a certain point though the volume will increase too much as to cause a significant decrease in pressure.
• The air molecules will gain kinetic energy, hence (1) increasing the molecules's speed, and (2) heating the air molecules.