As water becomes warmer and transitions to steam, the correct response regarding the changes in kinetic and potential energy of the particles is:
The particles gain both potential and kinetic energy.
During the heating process, the kinetic energy of the particles increases as they move faster at higher temperatures. Additionally, as water transitions into steam (a phase change from liquid to gas), energy is absorbed in the form of latent heat, which increases the potential energy of the particles as they move apart from each other.