The best explanation for the increase in mammalian diversity after 65 million years ago is:
D: The extinction of the dinosaurs 65 million years ago left unfilled niches for mammals.
This event, often attributed to a mass extinction caused by a significant asteroid impact, removed many dominant species and opened up various ecological niches. Mammals, which were previously smaller and less diverse, had the opportunity to evolve and diversify into the spaces left vacant by dinosaurs, leading to the exponential increase in mammal diversity observed in the fossil record after this period.