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Same link mentioned above says that it is possible to delete, but after creating a subnet it is not possible. So the answer is D.
Prerequisite: To delete a security list, it must not be associated with a subnet yet. You can't delete the default security list in a cloud network.
https://docs.cloud.oracle.com/iaas/Content/Network/Concepts/securitylists.htm?Highlight=remove%20security%20list
We can surely add or remove security lists after subnet creation so, option D is incorrect.
Option C is also incorrect as individual end points or instances don't require a security list. All endpoints and instances within a subnet are governed by security list(s) associated with that subnet.
Even option A & B are incorrect.
If Option C - "Each network endpoint or instance in the subnet needs its own security list" is modified slightly for eg - "Each network endpoint or instance's traffic in the subnet is governed by security list." then it could be the right option
D is not correct.
https://docs.cloud.oracle.com/iaas/Content/Network/Concepts/securitylists.htm?Highlight=remove%20security%20list
To change which security lists a subnet uses:
- To remove a security list: Click the X next to the security list.
I also think the answer is D
answer - D