Step 1: Recall the cloning capacities of common vectors.
Different cloning vectors can accommodate different sizes of foreign DNA.
\[
\boxed{
\begin{aligned}
\text{Plasmid} &\rightarrow 2\text{--}10\ \text{kb}
\text{Cosmid} &\rightarrow 35\text{--}45\ \text{kb}
\text{BAC} &\rightarrow 100\text{--}300\ \text{kb}
\text{YAC} &\rightarrow 200\text{--}1000\ \text{kb}
\end{aligned}
}
\]
Step 2: Identify the vector with the highest capacity.
Among the given vectors,
\[
\boxed{\text{Yeast Artificial Chromosome (YAC)}}
\]
can accommodate the largest DNA inserts.
Therefore,
\[
\boxed{(D)}
\]
is the correct answer.