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Answer (B) is correct . Since it now takes fewer euros to buy a single dollar, the dollar has declined in value relative to the euro; i.e., the euro has gained purchasing power. As a result, imports from Europe will become more expensive and will tend to decrease.

Answer (A) is incorrect because Since it now takes fewer euros to buy a single dollar, the euro has appreciated (gained purchasing power) relative to the dollar.
Answer (C) is incorrect because Since a dollar will now fetch fewer euros than before, U.S. tourists will find European goods more expensive.
Answer (D) is incorrect because Since the euro has gained purchasing power against the dollar, U.S. exports should increase.