Final answer:
The correctly punctuated sentence is option D. "No," she said, "I've never seen that movie."
Step-by-step explanation:
The correctly punctuated sentence is option D. "No," she said, "I've never seen that movie." In this option, the quotation marks are placed correctly around the dialogue, and the comma is used to separate the dialogue tag from the dialogue itself. The capitalization and punctuation inside the quotation marks are also correct.