Step 1: Understanding the size of colloidal particles.
Colloidal particles generally range in size from 1 nm to 1000 nm. Starch particles in colloidal dispersion can be as large as 10$^3$ nm.
Step 2: Analyzing the options.
(A) 0.1 nm: This is too small for a colloidal particle.
(B) 1 nm: This is also too small for starch particles in colloidal dispersion.
(C) greater than 10$^3$ nm: This is incorrect, as colloidal particles are generally not larger than 10$^3$ nm.
(D) 10$^3$ nm: This is correct, as starch particles in colloidal dispersion can be as large as 10$^3$ nm.
Step 3: Conclusion.
The correct answer is (D) 10$^3$ nm.