Hi,
I had done this qn. some days ago. What Govindsuku thought first was right. The answer is (b). I will explain :
Consider the rod touching the wall at 'x' distance from the ground and the ground at 'y' distance from the wall. So : x2 + y2 = l2
Differentiating with respect to time, t :

x
2 /

t +

y
2 /

t =

l
2 /

t
: 2xvx = - 2yvy
ie, When y decreases; x increases; vx decreases.
What do you say ??!!