Choice "D" is correct. Negotiability of the instrument is a prerequisite to holder in due course (HDC) status.
Choice "c" is incorrect. A note is negotiable as long as it is payable in currency recognized as money where the currency is issued.
Choice "b" is incorrect. The holder need not be the payee to be a HDC. The whole point of commercial paper is its transferability; the commercial paper may be transferred beyond the original payee.
Choice "a" is incorrect. Not all prior holders need to have been HDCs in order for the present holder to be an HDC. For instance, if the note is endorsed and gifted to a person, the donee is not an HDC because the donee has not given value. (Note: under the "shelter doctrine," a donee will have the rights of an HDC if the donor was an HDC.) Even though a donee may not be an HDC, a subsequent holder could acquire HDC status if (i) the subsequent holder pays to the donee value for the note and (ii) the other three requirements for HDC status are present: the holder obtained the instrument in good faith, the holder obtained the instrument without notice of any defenses to, or claims of ownership on, the instrument, and the instrument was commerical paper.