The string to be chosen must be in $L$ and this rules out option C. Now pumping lemma says that if a language $L$ is accepted by a DFA with $k$ states and $w = xyz$ is in $L$ and $\textbf{of length at least $k,$}$ then
1. $xy^iz$ is in $L$ for $i \geq 0$
2. $\mid xy \mid \leq k$
3. $\mid y \mid > 0$
Due to $w$ requiring length at least $k,$ we can rule out options A and B. For option D, we can see that $x y$ consist only of $0s$ and hence $y$ also consist of only $0s$ and when we pump more $y$ by increasing $i$ in $y^i$ or making $i = 0$ we get a string with unequal number of $0's$ and $1's$ which is not in $L,$ violating pumping lemma. Hence, correct answer is D.