For normalized value in IEEE-754 representation the exponent field cannot be all $1s.$ So, to get the maximum exponent we should make the exponent field $1111110$ which equals $254$ but with a bias of $127$ (used to have negative exponent in IEEE-754 representation), this equals $127.$
Sign bit must be $0$ to make the number positive.
Mantissa bits must be all $1s$ to maximize the number so that the represented number equals $1.\underbrace{111..1}_{\text{23 1s}} = 1+ (1 - 2^{-23}) = 2 - 2^{-23}.$
So, correct option is D and the represented value $ = (2 - 2^{-23}) \times 2^{127}$