The total energy \( E \) of a satellite in a circular orbit is given by the sum of its kinetic and potential energy. The kinetic energy \( K \) is:
\[
K = \frac{1}{2} m v^2
\]
where \( v \) is the orbital velocity of the satellite. The potential energy \( U \) is given by:
\[
U = - \frac{G m M}{R + h}
\]
where \( G \) is the gravitational constant, \( m \) is the mass of the satellite, \( M \) is the mass of the Earth, and \( R + h \) is the distance from the center of the Earth to the satellite.
Using the fact that the orbital velocity \( v \) of a satellite is:
\[
v = \sqrt{\frac{GM}{R + h}}
\]
we can substitute this into the kinetic energy equation:
\[
K = \frac{1}{2} m \left( \frac{GM}{R + h} \right)
\]
Thus, the total energy \( E \) is:
\[
E = K + U = \frac{1}{2} m \left( \frac{GM}{R + h} \right) - \frac{G m M}{R + h} = - \frac{G m M}{2 (R + h)}
\]
This shows that the total energy \( E \) is inversely proportional to \( (R + h)^2 \).
Therefore, the correct answer is:
\[
\frac{1}{(R + h)^2}
\]