Step 1: Understanding the forces involved.
The maximum tension in the string occurs at the lowest point of the pendulum's swing, when both the gravitational force and the centripetal force act together.
Step 2: Maximum tension expression.
At the lowest point, the maximum tension is:
\[
T = mg + \frac{m v^2}{\ell}
\]
where \( v \) is the maximum velocity. For small amplitude oscillations, \( v = \sqrt{gA} \), so:
\[
T = mg + m \left( \frac{g A}{\ell} \right) = mg \left( 1 + \frac{A^2}{\ell^2} \right)
\]
Step 3: Conclusion.
The maximum tension is \( mg \left( \frac{A^2}{\ell^2} + 1 \right) \), so the correct answer is (D).