Concept:
Hydrophobic interactions occur when non-polar molecules or non-polar regions of molecules aggregate together in an aqueous environment. These interactions play an important role in protein folding, membrane formation, and molecular recognition.
Step 1: Behavior of non-polar molecules in water.
Water molecules form extensive hydrogen-bond networks.
When a non-polar molecule is introduced into water, surrounding water molecules become highly ordered around it.
This ordering decreases entropy.
Step 2: Formation of hydrophobic interactions.
When non-polar molecules cluster together, the total surface area exposed to water decreases.
As a result, many water molecules are released back into the bulk solution.
\[
\boxed{\text{Increase in disorder of water}}
\]
This increases the entropy of the system.
Step 3: Reason for stabilization.
Hydrophobic interactions are not caused directly by attraction between hydrophobic molecules.
Instead, they occur because clustering increases the entropy of surrounding water molecules.
\[
\boxed{\Delta S_{\text{water}} > 0}
\]
Therefore, the process becomes thermodynamically favorable.
Final Answer:
\[
\boxed{Option (B) is correct
\]