A

Step 1: When the coil of insulated wire is connected to a battery, a current flows through the wire.
Step 2: This flowing current generates a magnetic field around the coil, making it behave like an electromagnet.
Step 3: When this coil is brought near the galvanometer, the magnetic field produced by the coil interacts with the magnetic field within the galvanometer.
Step 4: According to Faraday's law of electromagnetic induction, a change in magnetic flux can induce an electromotive force (EMF) and consequently an induced current.
Step 5: The pointer of the galvanometer is deflected due to this induced current.
Therefore, the correct answer is: induced current is produced.