Step 1: Analysis of Statement (A)
Statement (A) is incorrect. The Congress party won fewer seats in the 1989 Lok Sabha elections than in the 1984 elections. The 1984 elections saw a landslide victory for Congress, with a record number of seats secured.
Step 2: Analysis of Statement (B)
Statement (B) is incorrect. The 'Congress system' did not end with the 1991 elections. Although the Congress party's support declined, it remained a significant force in Indian politics through the 1990s. The end of the 'Congress system' is generally considered to be after the 1996 elections.
Step 3: Analysis of Statement (C)
Statement (C) is correct. Despite a significant defeat in the 1989 elections, no single party achieved an absolute majority, leading to a period of coalition governments in India.
Step 4: Analysis of Statement (D)
Statement (D) is also correct. In 1989, the National Front, a coalition comprising parties such as the Janata Dal, formed a government with V.P. Singh as Prime Minister.
Step 5: Final Answer
Therefore, the correct answer is (D) (C) and (D) only.