Correct Answer : Option (C) :   The diode is destroyed.

Explanation : PIV stands for Peak Inverse Voltage. In other words, PIV is defined as the maximum voltage that can apply to a diode in the reverse direction. Applying higher voltage will cause the diode to destroy. Start conducting current in the normally "OFF" direction, which will damage the diode and often do things you don't like to your circuit. The exact details depend on the circuit design.

We usually select the PIV larger than the largest normal reverse operating voltage in our circuit. If you are making a full-wave rectifier for 220 Vac, you'd typically select a diode with a 240 or more PIV to give some "head room" and "safety factor" on the diode. The minimum should usually be selected like this: round-up from your designed or simulated reverse voltage to the next higher PIV for a diode family that gives you the current you require.