If the value of the kina appreciates, it means that the currency has become stronger relative to other currencies. This typically leads to a decrease in the cost of imports (as foreign goods become cheaper) and may encourage more imports, while exports may become relatively more expensive for foreign buyers, potentially reducing export demand.
In the short run, Papua New Guinea will likely increase imports because goods from abroad are now cheaper due to the stronger kina. In the long run, this could lead to a balance of payments deficit because the country's imports could outpace its exports due to reduced demand for their goods internationally, causing more money to flow out of the country.
Given this analysis, the correct answer would be:
C) increase import, deficit.