Option D is correct because the provided context states that dispersed settlements are caused by an extremely fragmented nature of the terrain and lists Meghalaya (a state in the North-East) as a specific region having this type of settlement. The description of 'forests and hills' aligns with the 'fragmented nature of the terrain' mentioned. Options A and B are incorrect as the context explicitly identifies alluvial plains and Rajasthan as regions associated with clustered or compact settlements.