DCM and H2O will be miscible clearly
DCM and H2O will make a turbid/colloidal mixture
DCM and H2O would stay as lower and upper layer respectively in the S.F.
DCM and H2O would stay as upper and lower layer respectively in the separating funnel (S.F.)
All alkyl halides are absolutely water insoluble. All alkyl halides are denser than water. In a separating funnel, the upper layer is called layer-1 and the lower layer is called layer-2. So the upper layer will be less dense H2O and the lower layer will be denser DCM. Hence option D is the correct answer.