Here is another way to reach 26.5, by rebuilding the actual total instead of using the shortcut formula directly.
Deviation of each observation $x_i$ from 23 is $d_i = x_i - 23$. Summing over all 20 observations, $\sum d_i = \sum x_i - 20 \times 23$.
We are told $\sum d_i = 70$, and $20 \times 23 = 460$. So $\sum x_i = 70 + 460 = 530$.
The mean is the total sum divided by the count: mean $= \frac{530}{20} = 26.5$.
Let's summarize:
Since 26.5 does not match 24, 25, or 26, option D, None of these, is correct.