The correct option is D VD2=0.7V and PD2=0W
Since diode D1 is forward biased, so voltage drop across it is 0.7V
As the diodes D1 and D2 are connected in parallel, so voltage drop across is equal to that across D1 i.e. 0.7V
Since, D2 is reversed biased, so no current flows through it and so power dissipated by D2 is zero.