The power transfer capability of a transmission line is the most affected by Inductance because,

Where,

P_R = Transmitted power

V_RL = Receiving end voltage

Z_O = Surge impedance

It is clear from the above relations that the power transfer capacity of the transmission line can be increased by reducing the inductance or transmitting the power at high voltage.

Currently, power is being transmitted at high voltage because the inductance can be reduced to a limit.

Inductive effect of overhead transmission line is more whereas in underground cable capacitive effect is more.

Hence, the correct option is (D).