Answer:
The correct answer is the third option: The kinetic energy of the water molecules decreases.
Explanation:
Temperature is, in depth, a statistical value; kind of an average of the particles movement in any physical system (such as a glass filled with water). Kinetic energy, for sure, is the energy resulting from movement (technically depending on mass and velocity of a system; in other words, the faster something moves, the greater its kinetic energy.
Since temperature is related to the total average random movement in a system, and so is the kinetic energy (related to movement through velocity), as the thermometer measures less temperature, that would mean that the particles (in this case: water particles) are moving slowly, so that: the slower something moves, the lower its kinetic energy.
In summary: temperature tells about how fast are moving and colliding the particles within a system, and since it is directly proportional to the amount of movement, it can be related (also directly proportional) to the kinectic energy.