If the reactants have more potential energy than the products in a chemical reaction, it means that the reaction is exothermic. In this case, the reaction will have to release energy to the surroundings.
So the correct response is:
The reaction will have to release energy to the surroundings.
When the reactants convert into products and the products have lower potential energy, the excess energy is typically released in the form of heat, light, or other forms of energy.