Correct option is D
Option (d) contains the error.
Error identification: The phrase "in first floor" is incorrect.
Grammatical Rule used: The correct preposition for referring to a specific floor in a building is "on," not "in."
Corrected sentence: "They want to live on the first floor of this building."
Explanation: The preposition "on" is used to indicate location on a surface, such as a floor.