D is corrent because a holder in due course (HDC) takes a negotiable instrument free of personal defenses, but not real defenses. Forgery (unauthorized signature) is a real defense, consequently a HDC will take the note subject to this defense.
A is incorrect because failure of consideration is a personal defense, and a holder in due course takes a negotiable instrument free of all personal defenses.
B is incorrect because breach of contract is a personal defense, and a holder in due course takes a negotiable instrument free of all personal defenses.
C is incorrect because fraud in the inducement is a personal defense, and a holder in due course takes a negotiable instrument free of all personal defenses.
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