Answer: D
The diol is 2-methylbutane-2,3-diol. The tertiary hydroxyl leaves, giving the tertiary cation at C-2. A hydride moves from C-3 to C-2, and C-3 becomes the carbonyl of 3-methylbutan-2-one. Methyl migration would give 2,2-dimethylpropanal instead, which is excluded by the stated convention.