Step 1: Series loop
The same current flows through the diode, resistor and meter. Kirchhoff's voltage law gives $5 = 0.7 + 200I$.
Step 2: Solve
$200I = 4.3$, so $I = 0.0215$ A.
Step 3: Convert
$0.0215\ \text{A} = 21.5$ mA.
Step 4: Rule out
If the knee voltage were ignored, $I = 25$ mA, and options 18.5 mA and 15.8 mA would need drops of $1.3$ V and $1.84$ V.
Final Answer:
The reading is 21.5 mA. This is option (B).
\[ \boxed{\text{(B) }21.5\ \text{mA}} \]