Step 1: Formula
The resolving power (R.P.) of a telescope is given by $R.P. = \frac{D}{1.22\lambda}$, where $D$ is the diameter of the objective lens.
Step 2: Analysis
* Increasing $D$ (aperture) directly increases the resolving power.
* Increasing $\lambda$ (wavelength) decreases the resolving power.
* Focal length or eyepiece diameter do not affect the theoretical resolving power.
Step 3: Conclusion
Increasing the diameter of the objective increases the resolving power.
Final Answer: (D)