The correct answer is D. The doctrine of cy-pres allows charitable gifts that fail to be applied to similar charitable purposes if a general charitable intention is found. In this scenario, since the school has closed, the trust can be redirected to a similar charitable purpose, such as funding a place at a nearby private school, provided a general charitable intention is established. 

Key Point: The cy-pres doctrine ensures that charitable gifts are not wasted and can be redirected to similar charitable purposes when the original purpose cannot be fulfilled, provided a general charitable intention is evident.