Explanation:

Statement I: The Digital India Scheme is not doing good in the country and the government is certainly not happy regarding its development.
The original statement is about the failure of the Digital India scheme but it also talks about the reason for such failure. So, this statement is not the correct choice.
Statement II: The Government is going to undertake major revamp for the Digital India scheme so that this scheme becomes relevant for India.
There is no reference in the original statement regarding any kind of major revamp to be carried out by the government in this scheme. So, this statement is also eliminated.
Statement III: The infrastructure sector in India is not doing good and the rural areas are suffering the most because of this.
It has no relevance to the original statement and hence, is out of consideration as the replacement of the given statement.
Statement V: The Government wants to do away with the Digital India scheme because it does not want to invest in something that has no future.
It is not mentioned in the statement that the government is going to do away with the Digital India scheme and that is why it cannot be the correct choice as the replacement of the given sentence.
Statement IV: Digital India is an ambitious scheme of the government but proper arrangements are missing in order to make it a grand success.
The Digital India scheme is an ambitious scheme of the government as mentioned in the statement itself and the scheme has not been a success since there is lack of infrastructure especially in the rural areas of the country. This means it is the correct replacement.
Evidently, Option D is the correct choice among the given options.