Correct option is B
A transformer has negative voltage regulation at a leading power factor.
Here's some more information about voltage regulation and power factor:
Voltage regulation: The change in secondary terminal voltage from no load to full load at a specific power factor. It's expressed as a percentage.
Power factor: The ratio of the real power absorbed by the load to the apparent power flowing in the circuit.
Negative voltage regulation: When the output voltage at full load is higher than the output voltage at no-load. This usually happens when the load is capacitive.
Positive voltage regulation: Occurs at both unity and lagging power factors.