The correct response is:
A. The particles gain both potential and kinetic energy.
As water heats up, its temperature increases, leading to an increase in the kinetic energy of the particles (they move faster). When water reaches its boiling point and begins to turn into vapor, additional energy is required to break the intermolecular bonds, which increases the potential energy of the particles as they separate from each other. Thus, both kinetic and potential energy increase during the process.