The correct response is:
Kinetic energy and velocity are at zero when the magnets are held apart, and both increase rapidly when they are released and move together. Energy stored in the magnetic field decreases.
This accurately describes the situation: when the magnets are held apart, they possess potential energy in the magnetic field. Once they are released, this potential energy converts into kinetic energy as they move toward each other, resulting in an increase in velocity and kinetic energy while the energy stored in the magnetic field decreases.