Consider deterministic cash flow at time $T$ to be $C$ then the present value should be $PV=\frac{C}{(1+r{)}^T}.$ In this case, when increasing the interest rate $r,PV$ decreases. In the context of option pricing, what will happen to the $PV$ of the European call option if we increase the interest rate $r?$

$PV$ does not change.

$PV$ will decrease.

$PV$ will increase.