This is an instrument with serrated edge wheel that produces dots on the fabric.*1 pointA. Chalk pencilsB. Liquid marking penC. Tailor's chalkD. Tracing wheel

The correct answer to the question is D. Tracing wheel.

A tracing wheel is a tool commonly used in sewing and fabric crafts, which features a serrated edge. This design allows it to roll across the fabric and create a series of small, precise dots or perforations. These dots serve as guide marks for cutting or sewing patterns onto the fabric.

In contrast, chalk pencils and tailor's chalk are used for marking directly onto the fabric, providing a temporary mark that can easily be brushed off or washed away. Liquid marking pens, while versatile for marking on various surfaces, do not produce the discrete, dotted guidance afforded by a tracing wheel. Thus, the tracing wheel is the distinct instrument that fits the description given in the question.