**Core Concept**
The question is testing the anatomical knowledge of the spinal cord in newborns. The spinal cord in humans is a continuation of the brainstem, extending from the base of the brain down to the level of L1-L2 vertebrae in adults. However, in newborns, due to the differences in vertebral development, the spinal cord ends at a higher level.

**Why the Correct Answer is Right**
In newborns, the spinal cord ends at the level of L3-L4 vertebrae due to the relatively longer vertebral column compared to the spinal cord. This is because the vertebral column grows faster than the spinal cord during fetal development. As a result, the spinal cord ends at a higher level than in adults, where it typically ends at the level of L1-L2 vertebrae.

**Why Each Wrong Option is Incorrect**
* **Option A:** This option is incorrect because it does not accurately represent the level at which the spinal cord ends in newborns.
* **Option B:** This option is incorrect because it suggests a lower level of termination than what is actually observed in newborns.
* **Option C:** This option is incorrect because it does not provide a specific or accurate level of termination.

**Clinical Pearl / High-Yield Fact**
It's essential to remember that the spinal cord ends at a higher level in newborns compared to adults. This knowledge is crucial during spinal surgeries or procedures in neonates to prevent damage to the spinal cord.

**Correct Answer: D. L3-L4 vertebrae.**