Step 1: Understanding the Concept:
The angular fringe width is \(\theta = \dfrac{\lambda}{d}\). When the apparatus goes into a medium of index \(\mu\), the wavelength becomes \(\lambda/\mu\), while \(d\) stays the same.
Step 2: Calculate.
\[ \theta_{water} = \frac{\theta_{air}}{\mu} = \frac{0.2^\circ}{4/3} = 0.2^\circ\times\frac{3}{4} = 0.15^\circ \]
Step 3: Check the options.
\(0.10^\circ\) would need \(\mu = 2\). \(0.20^\circ\) means no change, which would be true only in air. \(0.25^\circ\) is bigger and would mean the fringes widened.
Final Answer:
The angular width becomes \(0.15^\circ\), option (B).
\[ \boxed{0.15^\circ} \]