Concept:
A p-n junction diode is formed when p-type semiconductor and n-type semiconductor materials are joined together. At the junction, electrons and holes combine and create a region called the depletion layer.
This depletion region creates an electric field and a potential barrier that normally prevents free flow of current.
The behavior of this barrier changes depending upon whether forward bias or reverse bias is applied.
Step 1: Understanding forward bias connection in a diode.
A diode is said to be forward biased when:
\[
Positive\ terminal\ of\ battery\rightarrow p\text{-}side
\]
\[
Negative\ terminal\ of\ battery\rightarrow n\text{-}side
\]
This external voltage pushes charge carriers toward the junction.
Electrons from n-side and holes from p-side move closer together.
Step 2: Studying the effect on depletion layer and potential barrier.
The applied forward voltage opposes the internal electric field already present at the junction.
As a result:
\[
Barrier\ Potential\ decreases
\]
At the same time:
\[
Depletion\ Layer\ Width\ decreases
\]
This allows majority charge carriers to cross the junction more easily.
Step 3: Determining the correct option by comparing all statements.
Checking all options:
Option A:
\[
Increases\ potential\ barrier
\]
Incorrect because forward bias reduces barrier.
Option B:
\[
Decreases\ potential\ barrier
\]
Correct because current flow becomes easier.
Option C:
\[
Increases\ depletion\ width
\]
Incorrect because depletion width decreases.
Option D:
\[
Converts\ into\ insulator
\]
Incorrect because forward bias makes conduction easier.
Therefore the correct effect is:
\[
\boxed{Decreases\ the\ potential\ barrier}
\]
Hence option (B) is correct.