Step 1: Pebrine is a well known disease of silkworm, so (A) is correct.
Step 2: It is caused by Nosema bombycis, a microsporidian traditionally classed with protozoa, so (B) is correct.
Step 3: Infected larvae show tiny black or pepper like spots on the body wall, which is the origin of the name pebrine, so (D) is correct.
Step 4: Sudden foul smell on death of larva is a feature of a bacterial disease called flacherie, not pebrine, so (C) is incorrect. The answer is option 2.