## Core Concept
The question revolves around the diagnosis of a psychological condition that could arise after experiencing a traumatic event, such as an earthquake. The symptoms described include nightmares about the episode and nocturnal terror, which are characteristic of specific post-traumatic and sleep disorders.

## Why the Correct Answer is Right
The symptoms described—nightmares about the traumatic event and waking up in terror—are classic symptoms of **Post-Traumatic Stress Disorder (PTSD)**. PTSD can develop after a person experiences a traumatic event, and it is characterized by symptoms that last for more than a month, including flashbacks, severe anxiety, and uncontrollable thoughts about the event. Nightmares and severe sleep disturbances are common in PTSD.

## Why Each Wrong Option is Incorrect
- **Option A:** While not specified, if this option does not align with PTSD or another sleep disorder related to trauma, it would be incorrect based on the symptoms described.
- **Option B:** Similarly, without specifics, if this does not match PTSD or another relevant condition, it's incorrect.
- **Option C:** This option is not provided, but presumably, it could be a distractor.
- **Option D:** Assuming this is not PTSD, it would be incorrect given the symptoms provided.

## Clinical Pearl / High-Yield Fact
A key point to remember is that PTSD can manifest with a variety of symptoms beyond just nightmares, including avoidance of stimuli associated with the trauma, negative changes in mood or cognition, and marked alterations in arousal and reactivity. The presence of nightmares and nocturnal terror following a traumatic event should prompt consideration of PTSD.

## Correct Answer: D. PTSD