Choice "D" is correct. The reconciliation of the change in fund balances in governmental fund financial statements to the change in net position for governmental activities in the government-wide financials is computed using the GOES BARE mnemonic. The fact pattern only describes measurement focus (GOES) issues computed as follows:

Choice "b" is incorrect. The change in net position is not equal to the change in fund balance. The reconciling items described above must be considered.Choice "c" is incorrect. The change in fund balance reconciles to the change in net position as a result of considering only the change in internal service fund net position per above. Changes in pension fund fiduciary net position are not relevant to the reconciliation.
Choice "a" is incorrect. The change in fund balance reconciles to the change in net position as a result of considering only the change in internal service fund net position per above. Changes in water and sewer (enterprise) net position are not relevant to the reconciliation.