Answer: D.The satellite continuously move closer and farther away from the moon.
The moon rotates on its axis and revolves around Earth in 27 days. The satellite is orbiting Earth once per day.
In moon 's frame of reference, the satellite would be in motion. Sometime it would be away and sometimes closer. From moon, we would observe satellite to rotate about the Earth. The satellite would get eclipsed by the Earth sometimes when it would go behind it as viewed from moon.