D is the answer.
https://learn.microsoft.com/en-us/azure/active-directory/develop/app-objects-and-service-principals#service-principal-object
Application - The type of service principal is the local representation, or application instance, of a global application object in a single tenant or directory. In this case, a service principal is a concrete instance created from the application object and inherits certain properties from that application object. A service principal is created in each tenant where the application is used and references the globally unique app object. The service principal object defines what the app can actually do in the specific tenant, who can access the app, and what resources the app can access.
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