Step 1: Understanding the Question:
The question asks us to identify the N-terminal (amino-terminal) and C-terminal (carboxyl-terminal) amino acid residues, respectively, in the given pentapeptide sequence: $\text{Ala-Gly-Ser-Tyr-Gly}$.
Step 2: Key Formula or Approach:
By international biochemical convention, peptide and polypeptide sequences are always written, read, and named from the N-terminal end on the left to the C-terminal end on the right:
$$\text{N-Terminal (Free }-\mathrm{NH_2}\text{)} \longrightarrow \text{C-Terminal (Free }-\mathrm{COOH}\text{)}$$
Step 3: Detailed Explanation:
Let's analyze the given sequence from left to right:
$$\text{Ala}-\text{Gly}-\text{Ser}-\text{Tyr}-\text{Gly}$$
The amino acid residue on the extreme left is Alanine ($\text{Ala}$). It retains its unreacted, free amino group ($-\mathrm{NH_2}$), making it the N-terminal residue.
The amino acid residue on the extreme right is Glycine ($\text{Gly}$). It retains its unreacted, free carboxylic acid group ($-\mathrm{COOH}$), making it the C-terminal residue.
Therefore, the N-terminal and C-terminal residues are Alanine ($\text{Ala}$) and Glycine ($\text{Gly}$), respectively.
Step 4: Final Answer:
The N and C terminals are Ala and Gly, which corresponds to option (D).