Step 1: Recall the definition of an urban area (Census Town) in India. The Census of India defines a town/city based on a few criteria.
Step 2: List the criteria. For a place to be designated a Census Town, it must satisfy:
A minimum population of 5,000. (Matches C)
At least 75% of the male main working population engaged in non-agricultural pursuits.
A population density of at least 400 persons per sq. km. (Matches A)
A statutory town is any place with a municipality, corporation, cantonment board, or notified town area committee. (Matches B)
Step 3: Analyze option (D). It states "More than 75% of population engaged in primary sector". This is the {opposite} of the actual criterion, which requires 75% of the male workforce to be in the non-primary (secondary and tertiary) sectors. Engagement in the primary sector is a characteristic of rural areas. Therefore, this is not part of the definition.