The correct option is D Oasis are formed where underground water reaches the surface.
Oasis is a fertile watery patch of land found in the desert. As water is available in the Oasis, flora and fauna are found around the Oasis and people build settlements over there.
Formation of Oasis : When it rains over a large area, the water seeps down into the soil. But this water will stop moving downwards when it encounters a hard impermeable underground rock. In a desert when the sand is blown away by the wind, depressions are formed. In these depressions, where the water stored in underground rocks reaches the surface, it forms an Oasis.