Step 1: Plan:
Think of the dielectric as making the charges look farther apart.
Step 2: Steps:
The force in the medium drops by $K$, the same as increasing the distance in air by a factor $\sqrt K$, since force varies as $1/d^2$. So the equivalent air distance is $d\sqrt K$.
Final Answer:
The equivalent distance is $d\sqrt K$, option (A).
\[ \boxed{d\,k^{1/2}} \]