Hi there!
Let's solve this problem step by step!
1. First we take a look at the circle in the graph.
The centre of the circle is located at the point (3, -2). The circle touches the vertical axis in the point (0, -2). We can therefore conclude that the radius of the circle is 3.
2. The general equation of a circle is as follows:

In this equation, the point (a, b) is the centre of the circle and r represents its radius.
3. Combine our knowledge from 1. and 2.
Let's substitute the centre and radius into our eqiation!

Now we can square on the left side, and replace the two minus signs by a plus.

Hence, the answer is D.
~ Hope this helps you!