Concept:
In 8051, register banks are selected using PSW bits RS1 and RS0.
Step 1: PSW bits for bank selection
\[
\text{RS1} = \text{PSW-4}, \quad \text{RS0} = \text{PSW-3}
\]
Step 2: Bank selection table
• Bank 0 → RS1=0, RS0=0
• Bank 1 → RS1=0, RS0=1
• Bank 2 → RS1=1, RS0=0
• Bank 3 → RS1=1, RS0=1
Step 3: For Bank-2
\[
RS1 = 1,\quad RS0 = 0
\]
Step 4: Map to PSW bits
\[
PSW-4 = 1,\quad PSW-3 = 0
\]
Step 5: Conclusion
\[
\boxed{PSW-3 = 0 \text{ and } PSW-4 = 1}
\]
Final Answer:
\[
\boxed{(D)}
\]