Correct option is D
The correct substitution is (d) was writing.
Explanation: The sentence has two actions – "was writing" and "I called". Both occurred in the past, so past continuous should be used for the ongoing action and simple past for the interrupting one.
Correct Structure:
Past Continuous (ongoing) + when + Simple Past (interruption)
Example: She was reading a book when I knocked.
Information Booster:
Use past continuous tense for an action in progress when another action interrupts it in past simple.