Step 1: Understand working of galvanometer.
A moving coil galvanometer works on torque produced due to current and restoring torque of suspension wire. Step 2: Role of suspension wire.
The suspension wire provides restoring torque to bring the coil back to its original position. Step 3: Requirement for sensitivity.
For higher sensitivity, even small current should produce large deflection. Step 4: Relation of restoring torque.
Restoring torque is proportional to twist. Smaller restoring torque gives larger deflection. Step 5: Property of phosphor bronze.
Phosphor bronze has low torsional rigidity, hence restoring torque per unit twist is small. Step 6: Conclusion.
This makes the galvanometer more sensitive. Step 7: Final Answer.
\[
\boxed{\text{Option (D)}}
\]