The correct option is D varied with time
We know that the displacement current is given by,
Id=ε0dϕEdt=Aε0dEdt
Here, E is the electric field
As potential difference is given by,
V=Ed
Here, d is the distance between the plates.
⇒Id=Aε0ddVdt
Therefore, the displacement current is set up between the plates of a capacitor only when the potential difference across the plates is varying.
Hence, option (D) is the correct answer.