Step 1: Understanding the Concept
Resource partitioning is when species that compete for the same resource use it in different ways or at different times.
Step 2: Check each
It occurs where two species compete, it avoids competition by different feeding times, and it promotes co-existence.
Step 3: Incorrect one
It does not work on the exclusion principle. It prevents competitive exclusion.
Final Answer:
Saying it works on the exclusion principle is incorrect.
\[ \boxed{\text{(D) }\text{It works on exclusion principle.}} \]