The correct response is:
Potential energy would decrease, while total mechanical energy would remain constant.
As the swimmer jumps off the diving board, the potential energy decreases because the height above the water decreases. However, the total mechanical energy (which is the sum of potential energy and kinetic energy) remains constant, assuming no energy is lost to air resistance or other forms of friction. As the swimmer falls, the potential energy is converted into kinetic energy, but the total mechanical energy stays the same.