Answer:
The correct answer option is D. compound sentence.
Step-by-step explanation:
We are given the following group of words and we are to determine if it is a compound sentence, a run-on sentence, or a sentence fragment:
The kangaroo lives in Australia and consumes grass.
This is a compound sentence because it has two independent clauses which are joined by using a conjunction 'and'.
Therefore, the correct answer option is D.