The essential difference between an AC generator and a DC generator is that
AC generator has slip rings while the DC generator has a commutator.
The explanation for the correct answer:
Option D: AC generator has slip rings while the DC generator has a commutator.
Slip rings are two rings on an alternating current generator. These full rings aid in changing current directions, resulting in AC current.
The explanation for Incorrect answer(s):
Option A: AC generator has an electromagnet while a DC generator has a permanent magnet.
Option B: DC generator will generate a higher voltage.
Option C: AC generator will generate a higher voltage.
Hence, option D is the correct answer.