Notice that the red dotted line is the hypotenuse of a right triangle with the side of the cube (2cm) for one leg, and the green dotted line for the other. If we can find the green dotted line, we can calculate the red one.
The green line is the hypotenuse of a right triangle as well, isn't it? In fact, it's the hypotenuse of a isosceles right triangle (both its legs are 2cm), so we know from the table at the beginning of the section, or from our memories, that the length of the green dotted line is 2√2 cm.
Now let's calculate the diameter, the red dotted line!
That's choice (D)!