D because the apostrophe is used to make the word everybody possessive, meaning the the breach is the problem of every body. B. is correct written, but the apostrophe there it's being used just to make a contraction between here and is which means that is not necessary , and is also incorrect for a formal writing, for in formal writings you should not use contractions.
The correct answer is choice D: The dangerous crosswalk is everybody's problem. ...In choice A, the word "theirs" is not a contraction, so it would not need an apostrophe. The same is true for choice B: "Hers" is not a contraction; no apostrophe is needed. Also, in choice C, "dollar's" is <em>not</em> a contraction, but it <em>is</em> a possessive, so it needs an apostrophe, however the apostrophe is incorrectly placed <em>after </em>the "s", instead of <em>before</em> it.<em />
