The correct answer is B) More oil will enter the operating cylinder (O). When there is an increase in load on a ship service generator equipped with a centrifugal type hydraulic governor, the governor weights will move outward due to the increased centrifugal force. This causes the operating piston to move upward, which in turn allows more oil to enter the operating cylinder (O). This increased oil flow helps to maintain the generator's speed and compensate for the increased load. The other options are incorrect because: A) The governor weights moving outward is the cause of the increased oil flow, not the result. C) Steam flow is not relevant in this case, as this is a ship service generator, not a steam turbine. D) The operating piston moves upward, not lower, in response to the increased load.