Step 1: Characteristics of IVC.
The Indus Valley Civilization featured planned cities, drainage systems, grid patterns, and urban settlements like Mohenjo-Daro and Harappa.
Step 2: Urban features.
It demonstrates complex social organization, trade networks, and civic planning, differentiating it from rural or simple agrarian societies.
Step 3: Conclude.
\[
\boxed{\text{Urban civilization (Option D) characterizes Indus Valley Civilization.}}
\]