The correct option is
D cannot exist in a region not occupied by magnetic field
A:Faraday's experiments tell us that varying magnetic fields can produce induced electric field. Hence, the first statement is correct.
B:Consider a superconducting ring within the area of which a magnetic field parallel to its area of cross section is increasing. The electrons in the ring are accelerated due to the induced electric field and after traveling the distance of a circumference, they have acquired some energy. Thus, after traveling in a closed loop, the work done by electric field on electrons is not zero. Hence, the electric field is non conservative. Therefore, the second statement is correct.
C:Now, consider a bigger concentric ring. When the magnetic filed increases, the flux associated with this ring changes and even though magnetic field does not exist outside the boundaries of this smaller ring, electric field is induced in this region. Hence, the third statement is wrong.