Concept:
This question is based on successive differentiation. First we form a differential equation satisfied by \(y\), and then differentiate it \(n\) times.
Step 1: Given function.
\[
y=e^{m\sin^{-1}x}
\]
Taking logarithm:
\[
\log y=m\sin^{-1}x
\]
Step 2: Differentiate once.
\[
\frac{1}{y}\frac{dy}{dx}=\frac{m}{\sqrt{1-x^2}}
\]
\[
y'=\frac{my}{\sqrt{1-x^2}}
\]
Step 3: Form the differential equation.
On differentiating again and simplifying, the standard differential equation obtained is:
\[
(1-x^2)y''-xy'-m^2y=0
\]
Step 4: Differentiate \(n\) times.
\[
D^n\left[(1-x^2)y''\right]-D^n[xy']-m^2D^n[y]=0
\]
Using Leibniz theorem:
\[
D^n\left[(1-x^2)y''\right]
=(1-x^2)y_{n+2}-2nxy_{n+1}-n(n-1)y_n
\]
Also,
\[
D^n[xy']=xy_{n+1}+ny_n
\]
Step 5: Substitute these values.
\[
(1-x^2)y_{n+2}-2nxy_{n+1}-n(n-1)y_n-xy_{n+1}-ny_n-m^2y_n=0
\]
\[
(1-x^2)y_{n+2}-(2n+1)xy_{n+1}-(n^2+m^2)y_n=0
\]
\[
\therefore \text{Correct Answer is (D)}
\]