Step 1: Recall the definition of centre of mass.
The centre of mass is the point at which the entire mass of a body may be considered to be concentrated for the purpose of analyzing motion.
Step 2: Understand possible locations.
Depending on the shape and mass distribution of the body:
It may lie inside the body (e.g., solid sphere)
It may lie outside the body (e.g., ring, hollow sphere)
Step 3: Evaluate the options.
(A) Only inside — incorrect
(B) Only outside — incorrect
(C) Neither — incorrect
(D) Either inside or outside — correct ✔
Step 4: Final conclusion.
The centre of mass of a rigid body may lie either inside or outside the body.
\[
\boxed{\text{(D)}}
\]