The correct option is E (i) Increases (ii) reduces
When a population contains a large and diverse gene pool, the group has a greater chance of surviving and flourishing than a population with limited genetic variability. This is because genetic diversity increases the incidence of helpful inherited traits such as disease or stress tolerance. A less diverse population has a lower incidence of such favourable traits. However, they could possess other traits that increase their chances of survival. Simultaneously, genetic diversity also reduces the incidence of unfavourable inherited traits. In a small isolated population, individuals may be forced to breed with close relatives leading to the loss of heterozygosity. This in turn, increases the expression of unwanted recessive alleles that could otherwise, have been masked by the existence of favourable dominant alleles.