Answer
a) increase
b) III
Work Step by Step
(a) We know that the escape speed is given as $v_{esc}=\sqrt{2GM_E/R_E}$. This equation shows that if the mass is constant and the radius is decreased, then the escape speed of the Earth will increase.
(b) We know that the correct statement is option (III) -- that is, the force of gravity would be much stronger on the surface of the compressed Earth, leading to a greater escape speed.