Let the centre of the circle be \( C(0, r) \), where \( r \) is the radius, as the centre lies on the y-axis.
The distance between the centre \( C(0, r) \) and a point on the circle, say \( (-4, 3) \), gives the radius of the circle. Using the distance formula:
\[
{Distance} = \sqrt{(x_2 - x_1)^2 + (y_2 - y_1)^2}
\]
For the point \( (-4, 3) \), the distance from the centre \( C(0, r) \) is:
\[
{Radius} = \sqrt{(-4 - 0)^2 + (3 - r)^2} = \sqrt{16 + (3 - r)^2}
\]
Similarly, the distance between the centre \( C(0, r) \) and the second point \( (3, -4) \) gives the same radius:
\[
{Radius} = \sqrt{(3 - 0)^2 + (-4 - r)^2} = \sqrt{9 + (-4 - r)^2}
\]
Now we equate the two expressions for the radius:
\[
\sqrt{16 + (3 - r)^2} = \sqrt{9 + (-4 - r)^2}
\]
Squaring both sides:
\[
16 + (3 - r)^2 = 9 + (-4 - r)^2
\]
Expanding both sides:
\[
16 + (9 - 6r + r^2) = 9 + (16 + 8r + r^2)
\]
Simplifying:
\[
16 + 9 - 6r + r^2 = 9 + 16 + 8r + r^2
\]
\[
25 - 6r = 25 + 8r
\]
Solving for \( r \):
\[
-6r = 8r
\]
\[
r = 5
\]
Thus, the radius of the circle is 5.
Thus, the correct answer is option (D), 5.