Step 1: A hub is a simple Physical Layer (Layer 1) device. It has no knowledge of MAC or IP addresses.
Step 2: When a hub receives a signal on one port, it regenerates that signal and sends it out of every other port, so all connected devices receive the data.
Step 3: Routing between networks is a router's job, MAC-based filtering is a switch's job, and security is handled by firewalls. The hub simply regenerates and broadcasts, so the answer is option (D).