The best conclusion that fits the observations in the pictures is:
D. A compass needle is like a magnet because it pulls on iron metal but not wood.
This conclusion is based on the fact that the compass needle moves in response to the magnet, indicating that the magnetic field affects it, and the iron nail sticks to the magnet, showing that iron is attracted to magnetic forces. In contrast, the wooden block does not affect the compass needle or stick to the magnet, demonstrating that wood is not magnetic.