Step 1: Understanding the Concept:
In a potentiometer, the potential gradient is \(k=\dfrac{V}{L}\), where \(V\) is the driving voltage across the whole wire of length \(L\). The null point is at \(l=\dfrac{E}{k}\).
Step 2: Effect of lengthening the wire:
With the same driving source, the same voltage is spread over a longer wire (and the longer wire has more resistance, so the current drops). The potential gradient \(k\) becomes smaller.
Step 3: Effect on balancing length:
Since the cell emf \(E\) is the same, \(l=\dfrac Ek\) increases. Option B.
Step 4: Why the other options are wrong.
Decreasing or no change would need the gradient to rise or stay the same. A balancing length of zero is not possible for a real cell.
Final Answer:
The balancing length increases.
\[ \boxed{\text{(B) }\text{increase}} \]