The correct option is D 7-hydroxyheptan-2-one
By IUPAC rules,
1. Principle functional group must be included in the longest continuous carbon chain. Thus, ketonic group should be in the carbon chain.
2. As priority of -OH is less than -CO, -OH is considered as substituent and numbering should start from -CO.
Thus, we have -OH at 7th carbon and ketonic group at 2nd position.
Thus, the IUPAC of given compound is
7-hydroxyheptan-2-one
HO−H27C−6CH2−5CH2−4CH2−3CH2−2C−1COH3