Concept:
Biological nitrogen fixation converts atmospheric nitrogen into ammonia with the help of certain microorganisms.
Nitrogen-fixing organisms may be:
• Free-living
• Symbiotic
Some microorganisms are capable of existing freely in soil but perform nitrogen fixation mainly in association with plants.
Step 1: Understand Rhizobium.
Rhizobium is a bacterium that forms root nodules in leguminous plants.
Within these nodules it fixes atmospheric nitrogen.
Although it can survive in soil, efficient nitrogen fixation occurs in symbiosis.
Step 2: Understand Frankia.
Frankia is an actinomycete associated with roots of non-leguminous plants such as Alnus and Casuarina.
It also fixes atmospheric nitrogen in a symbiotic relationship.
Step 3: Examine other organisms.
Azotobacter is primarily a free-living nitrogen fixer.
Oscillatoria generally does not represent the classic symbiotic nitrogen-fixing association asked here.
Trichoderma acts mainly as a biocontrol agent.
Azospirillum is a free-living or associative nitrogen fixer.
Step 4: Final conclusion.
The microorganisms that live freely in soil but fix nitrogen as symbionts are:
\[
\boxed{\text{Rhizobium and Frankia}}
\]
Hence option (D) is correct.