Concept:
The electrostatic potential energy between two point charges is given by Coulomb’s law:
\[
U(r) = \frac{1}{4\pi \epsilon_0} \cdot \frac{q_1 q_2}{r}
\]
This shows that the potential energy depends inversely on the distance between the charges.
Step 1: Write the expression for potential energy.
\[
U(r) = \frac{1}{4\pi \epsilon_0} \cdot \frac{q_1 q_2}{r}
\]
Step 2: Identify proportionality.
From the formula, we observe:
\[
U(r) \propto \frac{1}{r}
\]
Step 3: Final conclusion.
Hence, the potential energy varies inversely with distance $r$, so the correct answer is:
\[
\frac{1}{r}
\]