Step 1: Continuity on \(D.\)
For each \(y \ne 0\), \(f(x,y) = x\sin(1/y)\) is continuous in \(x\).
Also, for fixed \(x\), \(\sin(1/y)\) is bounded and continuous for \(y \ne 0\).
Hence, \(f\) is continuous on \(D\).
Step 2: Behavior near \((0,0).\)
As \((x,y)\to(0,0)\),
\[
|f(x,y)| = |x\sin(1/y)| \le |x| \to 0.
\]
Thus, the limit exists and equals 0.
Step 3: Define extension.
Define \(f(0,0)=0\). The extended function is continuous at \((0,0)\).
Step 4: Conclusion.
Hence, (C) is correct.