Step 1: Concept
The order of a differential equation represents the number of independent arbitrary constants in the family of curves.
Step 2: Meaning
A circle with center on the x-axis $(g, 0)$ passing through the origin $(0,0)$ has the equation $(x-g)^2 + y^2 = g^2$.
Step 3: Analysis
Simplifying the equation: $x^2 - 2gx + g^2 + y^2 = g^2 \implies x^2 + y^2 - 2gx = 0$. There is only one arbitrary constant ($g$).
Step 4: Conclusion
Since there is only one independent constant, the resulting differential equation will be of order 1.
Final Answer: (D)