Step 1: Use proportionality:
$M\propto N\cdot D^2$, and $N\propto\dfrac1D$ since the wire length is fixed.
Step 2: Combine:
So $M\propto\dfrac{D^2}{D}=D$. Doubling the diameter doubles the magnetic moment.
Step 3: Ratio:
$M_{old}:M_{new}=1:2$. Option C.
Final Answer:
Wire length fixes N inversely with D, so M is proportional to D, giving 1 : 2.
\[ \boxed{\text{(C) }1:2} \]