Step 1: Understanding the motion of the particle.
As the particle moves along a circular path with decreasing speed, it experiences a change in velocity. The direction of the angular momentum of the particle (which is perpendicular to the plane of motion) remains unchanged. The decrease in speed implies that the particle is losing kinetic energy, but the direction of the angular momentum vector remains constant.
Step 2: Conclusion.
Thus, the correct answer is (C) the direction of angular momentum remains constant.