Review your product D. It has one carbon atom less than your products B and C.
Also, I would say B is correct if you consider the rearrangement on Friedel-Crafts Acylation.
B -> C transformation is fine.
C -> D is worng, you need to place the two -CH3 groups on the same carbon atom of the cyclopentane ring. One of them is missing.
I believe that your last reaction will yield an indene (
http://en.wikipedia.org/wiki/Indene), the only possible one.