The correct option is D Along the line joining the North pole and South pole
A freely suspended magnet always rests in the north-south direction because the magnetic south pole of the earth lies in the geographic north direction and the magnetic north pole of the earth lies in the geographical south direction.And we know the N-pole of magnet will be attracted toward magnetic south of earth and S-pole of magnet will be attracted to magnetic north of earth.In other words the magnet will be aligned in line joining North and South Pole of earth.