Step 1: Nicotinic acid (niacin) acts on lipid metabolism mainly by inhibiting hormone-sensitive lipase in adipose tissue. This reduces the flow of free fatty acids to the liver, so the liver makes less triglyceride and less VLDL.
Step 2: Niacin is the most effective drug for raising HDL cholesterol. It reduces the apo-A1 mediated hepatic clearance of HDL, so HDL levels rise. This makes option a the correct statement.
Step 3: The other options are the opposite of niacin's actions. It decreases (not increases) triglyceride synthesis. It increases lipoprotein lipase activity, so it increases (not decreases) hydrolysis of VLDL triglyceride. It is used in type I, III, IV and V hyperlipoproteinaemias, not specifically type II, so that option is also incorrect.