Step 1: Concept
Forward bias occurs when the p-side is connected to the positive terminal and the n-side to the negative terminal.
Step 2: Meaning
The applied potential opposes the built-in potential barrier.
Step 3: Analysis
This causes majority charge carriers to be pushed toward the junction, reducing the region depleted of mobile carriers.
Step 4: Conclusion
Consequently, the width of the depletion layer decreases.
Final Answer: (B)