Answer: D
The alkoxide at C2 closes a five-membered ring by backside attack on C5, which inverts C5 only. At C5 the priorities are Cl>CX4>CHX3>H in the substrate and O>CX4>CHX3>H in the ring, so the label changes from R to S. C2 is not touched and stays R. The product (2R,5S) is the meso, cis-2,5-dimethyloxolane.