The correct answer is $\boxed{\text{D}}$.
The limit does not exist because the two expressions have different values as $x$ approaches 1.
For $x=1$, the numerator is $1-2+1=0$ and the denominator is $1-3+2=0$. Therefore, the limit is 0/0, which is an indeterminate form.
We can try to find the limit by L’Hôpital’s rule. However, L’Hôpital’s rule does not apply in this case because the derivatives of the numerator and denominator are both 0 at $x=1$.
Therefore, the limit does not exist.