34. On January 5, 2020, D obtained a P100,000 loan from C. The loan is payable on December 31, 2020 and secured by a chattel mortgage on D's car. On November 26, 2020, the car was taken at gunpoint from D while at the SM parking lot.*

(A) D's loan obligation is extinguished. However, D must give a property which C may sell to satisfy his claim.

(B) D's loan obligation subsists. However, C may demand its immediate payment unless D gives another security.

(C) D's loan obligation subsists. However, C may not demand immediate payment since the loss of the security was without the fault of D. D, moreover, is not required to give a new security.

(D) D's loan obligation is extinguished together with the mortgage since the loss of the car was without the fault of D.

Brief explanation will help, thanks!