D is correct. Double checked it. login means local secret or password, login local mean local database user. If it was ssh instead of telnet it would not work because ssh would require also user not only password
I bealive that C is correct, because with the configuration presented you can log in the router via telnet but you dont have any privileges, so I consider this a fail. You need the enable secret to gain exec privilege.
it says in the link above that the console pwd will serve as the enable password.
"If neither the enable password command nor the enable secret command is configured, and if there is a line password configured for the console, the console line password will serve as the enable password for all VTY (Telnet and Secure Shell [SSH]) sessions."
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