Correct option is : (1) increases

\(
Z=\sqrt{R^{2}+X_{C}^{2}} \ \&\ X_{C}=\frac{1}{W C}
\)
due to dielectric
\(\mathrm{C} \uparrow \Rightarrow \mathrm{X}_{\mathrm{C}} \downarrow \Rightarrow \mathrm{Z} \downarrow\)
So, current increases & thus bulb will glow more brighter.