Civ Pro Question

Can someone please explain why the answer is D and not C? Would the Defendant forum/ in state defendant rule not apply? Thought a case can’t be moved to the federal court of the state a defendant resides.

Can someone please explain why the answer is D and not C? Would the Defendant forum/ in state defendant rule not apply? Thought a case can’t be moved to the federal court of the state a defendant resides.