The correct answer is: D. The dense forest is inhabited by wild animals.
The other options are incorrect because they use the wrong verb tense. The sentence is in the present tense, so the verb should also be in the present tense. Option A uses the singular verb “lives,” but the subject of the sentence is “wild animals,” which is plural. Option B uses the past tense verb “lived,” but the sentence is about the present, not the past. Option C uses the present progressive verb “is living,” but this verb is used to describe actions that are happening at the moment, and the sentence is about a general fact, not an action that is happening right now.
The sentence “The dense forest is inhabited by wild animals” is grammatically correct and conveys the intended meaning.