Correct option is D
The correct substitution for the highlighted words "the difference in good and bad" is "between good and bad." The correct preposition to use when discussing differences involving two items is "between," not "in." The original sentence implies a comparison between two qualities, good and bad dressing, thus "between" is appropriate.
Grammatical rule used: The preposition "between" is used when referring to two distinct, often closely related items or states.
Example: She couldn't decide between chocolate and vanilla ice cream.