The correct answer is (d) decreases both the principal stress and the shear stress
To elaborate: The principal stress is given by the formula –
P = Pv sec(Φ)^2 – p’ tan(Φ)^2 where Pv is the intensity of vertical pressure and p’ is the tail-water pressure
The shear stress on the horizontal plane near the toe is given by –
S = (Pv – p’) tan(Φ)
From both the equations, it is clear that the tail-water pressure is opposite in nature and it reduces the value of principal stress and shear stress.