Correct Answer: D. Diabetes
Explanation: Granuloma annulare is a benign, non-infectious, granulomatous condition of the skin that is usually asymptomatic and self-limited. It typically presents with annular erythematous plaques that are most commonly found on the dorsal surfaces of the hands and feet. Generalized and perforating variants are most closely associated with diabetes.
Dabski K, Winkelmann RK. Generalized granuloma annulare: clinical and laboratory findings in 100 patients. J Am Acad Dermatol. 1989;20(1):39-47.