Answer:
(d) it is freely falling but it has a high tangential velocity.
Step-by-step explanation:
When Moon goes around the Earth it is pulled by the gravity of the Earth. Along with the gravity it also has its own velocity with which it is going around the Earth. The two factors combine together to give the desired orbit of the Moon around the Earth.
It can be considered like the Moon is trying to fall onto the Earth but the tangential velocity stops it from doing so. This was proved by Isaac Newton in an experiment generally known as Canon ball experiment. If you fire a canon with enough speed it will not land on Earth but take a complete circle of Earth and hit you back in the head. The same phenomenon applies to satellite orbiting the Earth or Earth orbiting the Sun.