Step 1: Understand covalency.
Covalency refers to the number of bonds an atom can form with other atoms. For nitrogen, the covalency is determined by the number of valence electrons and the available orbitals for bonding.
Step 2: Analyze nitrogen's bonding capacity.
- Nitrogen has 5 valence electrons and can form 3 single bonds (e.g., in NH$_3$) or 4 bonds in some cases (e.g., in NCl$_3$).
- However, nitrogen can also form 5 bonds in compounds like nitrogen pentachloride (NCl$_5$), where it utilizes its empty d-orbitals.
Step 3: Apply to the options.
The maximum covalency of nitrogen is 5, so option (D) is correct.
Final Answer:
\[
\boxed{5}
\]