In a system involving magnets, the potential energy is influenced by the interaction between the magnetic fields of the magnets. If Jeffrey moves Magnet 2 toward Magnet 1, the change in potential energy depends on the orientation of the magnets.
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Like Poles Attracting/Repelling: If the magnets have like poles facing each other (both North poles or both South poles), Magnet 2 will feel a repulsive force. As Jeffrey brings Magnet 2 closer, work must be done against this repulsive force, increasing the potential energy of the system.
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Opposite Poles Attracting: If Magnet 1 and Magnet 2 have opposite poles facing each other (one North and one South), they will attract each other. As Magnet 2 is moved closer to Magnet 1, the attractive force does work on the system, decreasing the potential energy as the magnets come closer together.
In summary, moving Magnet 2 toward Magnet 1 will either increase or decrease the potential energy of the system depending on whether the poles are like or opposite.