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$35$

$36\frac{2}{3}$

$37\frac{1}{2}$

$40$

D. $40$

Let distance = x km and usual rate = y kmph.

$Then,\frac{x}{y}-\frac{x}{y+3}=\frac{40}{60}\Rightarrow 2y(y+3)=9x....\left(i\right)$

$And,\frac{x}{y-2}-\frac{x}{y}=\frac{40}{60}\Rightarrow y(y-2)=3x....\left(ii\right)$

On dividing (i) by (ii), we get: x = 40.