C

Step 1: Understanding the work-energy principle: When work is done on a body by an external force, the energy of that body changes as a result of the work done.
Step 2: Types of energy involved: The energy can manifest itself as kinetic energy (energy of motion) or potential energy (stored energy due to its position).
Step 3: Work and energy transfer: If work is done on a body, it can increase the kinetic energy of the body if it causes it to speed up. Similarly, if the body moves against a force such as gravity, the work done can increase the potential energy.
Step 4: Conclusion: Therefore, depending on the circumstances, both kinetic and potential energies may increase when work is done on a body.
Hence, the correct answer is C.