Concept:
According to Faraday's law,
\[
\mathcal{E}
=
-\frac{d\Phi}{dt},
\]
where \(\Phi\) is the magnetic flux linked with the loop.
An induced emf is produced only when the magnetic flux through the loop changes with time.
Step 1: Consider the initial situation.
When the loop moves towards the stationary magnet with speed \(V\),
\[
\frac{d\Phi}{dt}\neq 0.
\]
Hence an induced emf
\[
\mathcal{E}=E
\]
is produced.
Step 2: Consider the new situation.
Now the loop moves towards the magnet with speed \(V\), while the magnet simultaneously moves away from the loop with speed \(V\).
Therefore, the relative speed between the loop and the magnet is
\[
V-V=0.
\]
Hence the separation between them remains constant.
Step 3: Determine the change in magnetic flux.
Since the distance between the loop and the magnet does not change,
\[
\Phi=\text{constant}.
\]
Thus,
\[
\frac{d\Phi}{dt}=0.
\]
Therefore,
\[
\mathcal{E}
=
-\frac{d\Phi}{dt}
=
0.
\]
Step 4: Write the final answer.
\[
\boxed{\mathcal{E}=0}
\]
\[
\boxed{\text{Answer = (D)}}
\]