Step 1: Recall the Mohr's Circle for pure shear.
For a pure shear state,
\[
\sigma_x=\sigma_y=0,
\]
\[
\tau_{xy}=\tau.
\]
Hence,
\[
\boxed{
\text{Center}=(0,0),
}
\]
and
\[
\boxed{
\text{Radius}=\tau.
}
\]
Step 2: Determine the principal stresses.
The principal stresses are
\[
\sigma_1=+\tau,
\]
\[
\sigma_2=-\tau.
\]
Therefore, the maximum normal stress is
\[
\boxed{\tau,}
\]
not
\[
2\tau.
\]
Hence,
\[
\boxed{\text{The statement "Maximum normal stress is }2\tau\text{" is incorrect}.}
\]
Thus,
\[
\boxed{(D)}
\]
is the correct answer.