The correct option is D It is formed when the pupil contracts to a very small size through which light cannot enter inside the eye.
A small portion in the retina which is insensitive to light is called blind spot. Blind spot is an area on the retina where the nerve endings enter the optic nerves. Since this area has no visual receptors such as rods and cones, the images falling on this area cannot be detected.
Formation of the blind spot has got nothing to do with the size of the pupil.