The answer to this is D.  All of the statements A through C are true, thus making D the best answer.

This case arose when the outgoing President Adams made a number of “midnight appointments” to keep the federal judiciary in the hands of the Federalist Party.  Incoming President Thomas Jefferson refused to honor the appointments.  Marbury, one of the judges, sued to force James Madison (Secretary of State) to recognize the appointment.  This makes A correct.  The Supreme Court ruled that the law under which Marbury had been appointed was unconstitutional, making C correct.  This was the first time that the Supreme Court had exercised judicial review, making B correct.  Therefore, D is the best answer.