As water becomes warmer, boils, and then becomes water vapor (steam), the correct statement is:
The particles gain both potential and kinetic energy.
When water is heated, the kinetic energy of the particles increases due to the increase in temperature, which makes them move faster. As the water reaches its boiling point and transitions to steam, energy is also added in the form of heat, which increases the potential energy of the particles as they overcome intermolecular forces to change from the liquid phase to the gas phase.