The answer is D: typeface
You have to understand that this question is asking about character and not paragraph formatting. Character formatting includes font styles, font sizes, typeface, and other specials effects such as strikethrough and underline. On the other hand, paragraph formatting includes things such as line spacing, indents, paragraph alignment, bullets, and tab settings. Character formatting is the most used MS Word features and its most popular settings are put right on the home tab. It is one place where you can change the typeface and the size.