Step 1: Concept
When a transparent plate is introduced in the path of one wave, the fringe pattern shifts by a distance $\Delta x = \frac{D}{d}(\mu - 1)t$.
Step 2: Meaning
$D = 1 \text{ m}$, $d = 2 \text{ mm} = 2 \times 10^{-3} \text{ m}$, $\mu = 1.5$, $t = 0.04 \text{ mm} = 4 \times 10^{-5} \text{ m}$.
Step 3: Analysis
$\Delta x = \frac{1}{2 \times 10^{-3}} \times (1.5 - 1) \times (4 \times 10^{-5})$
$\Delta x = \frac{1}{2 \times 10^{-3}} \times 0.5 \times 4 \times 10^{-5} = \frac{2 \times 10^{-5}}{2 \times 10^{-3}}$
$\Delta x = 10^{-2} \text{ m} = 1 \text{ cm}$.
Step 4: Conclusion
The lateral displacement of the fringes is $1 \text{ cm}$.
Final Answer: (B)