Step 1: Understanding the Concept:
Cotton squares (flower buds) are susceptible to various insect pests, which leave distinct damage symptoms.
Step 2: Detailed Explanation:
The Spotted bollworm (Earias vittella) is a significant pest of cotton.
The larvae feed inside the squares, causing the bracts to open up or "flare out".
This key symptom is known as "flared square", which is followed by premature dropping of the squares.
Therefore, the insect responsible for flared square symptoms is the Spotted bollworm.
Step 3: Final Answer
The correct option is (D).