The given information can be tabulated below.

$\begin{array}{cccc}\text{PERSON}& \text{SPORT}& \text{NATIVE}& \text{PLAYS}\\ B& & \text{Chennai}& \text{Mumbai}\\ C& \text{Swims}& \text{X Pune}& \\ & \text{Football}& \text{X Pune}& \text{Pune}\\ & \text{Hockey}& \text{Hyderabad}& \\ D& \text{X Chess}& \text{X Bangalore}& \text{Bangalore}\end{array}$

From the above table we can deduce that

1 ) D is a native of Pune

2) B plays Chess and D pays Cricket

3) C plays in Hyderabad

4) Since E is a native of Bangalore, the only row available for this is row 3 and thus, we can also deduce that E plays Football in Pune

5) therefore, C is a native of Mumbai. The table can now be completely filled

$\begin{array}{cccc}\text{PERSON}& \text{SPORT}& \text{NATIVE}& \text{PLAYS}\\ B& \text{Chess}& \text{Chennai}& \text{Mumbai}\\ C& \text{Swims}& \text{Mumbai}& \text{Hyderabad}\\ E& \text{Football}& \text{Bangalore}& \text{Pune}\\ A& \text{Hockey}& \text{Hyderabad}& \text{Chennai}\\ D& \text{Cricket}& \text{Pune}& \text{Bangalore}\end{array}$

D is a native of Pune. Option (c)