The correct option is
D 27
The simplest squares are EFRQ, MQYX, QRZY, RNSZ, LXWK,
XYA1W,
YZB1A1,
ZSTB1, SGHT,
WA1VP,
A1B1UV,
B1TOU and VUIJ i.e. 13 in number.
The squares having two components each are AEYL, FBGZ,
KA1JD and
B1HCI i.e. 4 in number.
The squares having four components each are
MRB1W,
QNTA1, XZUP and YSOV i.e. 4 in number.
The squares having seven components each are
AFB1K,
EBHA1, LZID and YGCJ i.e. 4 in number.
There is only one square i.e. MNOP composed of nine components.
There is only one square i.e. ABCD composed of seventeen components.
There are
13+4+4+4+1+1=27 squares in the figure.