Correct option is D
The preposition "over" is incorrect in this context. The correct preposition is "under" because it indicates that the Ramsar site is designated in accordance with the provisions of the treaty.
The correct sentence should be: "A Ramsar site is a wetland designated to be of international importance under an environmental treaty."
Rule: Use "under" to indicate conformity with a rule, regulation, or treaty. Here, "under" correctly specifies that the designation is according to the environmental treaty.