Answer: The correct answer is (D).
Step-by-step explanation:
If the current is flowing in the wire then the compass shows the deflection due to the magnetic field around the current flowing wire.
In the given problem, four compasses are placed around a wire, as shown in the given figure. The compass is not showing any deflection. It means that there is no magnetic field around the wire. It can be concluded that the current is not flowing in the wire.
Therefore, the correct option is "A current does not flow in the wire".