Introduction:
The question states that the village is surrounded by certain geographical features and asks us to identify the correct option. The correct answer is option 'D', which states that the village is surrounded by hills. Let's discuss why this option is the correct answer.

Explanation:
- Plateaus: Plateaus are flat elevated landforms with steep sides. They are typically characterized by their flat top surface and are formed due to various geological processes. However, plateaus are not mentioned as a surrounding feature of the village in the question, so option 'A' can be eliminated.

- Rivers: Rivers are natural flowing water bodies that can be found in various landscapes. They are formed due to the accumulation of water from various sources, such as rainfall, springs, and glaciers. However, the question does not mention the presence of rivers surrounding the village, so option 'B' can be eliminated.

- Plains: Plains are low-lying areas that are characterized by their flat or gently rolling terrain. They are formed due to factors like erosion, deposition, and tectonic activity. However, the question does not mention the presence of plains surrounding the village, so option 'C' can be eliminated.

- Hills: Hills are elevated landforms with rounded tops and are lower in height compared to mountains. They are typically formed due to various geological processes like tectonic activity, erosion, or volcanic activity. The presence of hills surrounding the village is mentioned in the question, making option 'D' the correct answer.

Conclusion:
Based on the information provided in the question, the correct answer is option 'D', which states that the village is surrounded by hills. The other options, namely plateaus, rivers, and plains, can be eliminated as they are not mentioned in the question.