The waveform across a diode should be half-wave, not full-wave, prompting a discussion on determining the correct output based on the circuit. The oscilloscope's high input impedance means it measures voltage, with the upper input being positive relative to ground. When the diode is forward-biased, it behaves like a short circuit, resulting in a low voltage drop, while in reverse bias, it acts as an open circuit, blocking current. Participants emphasize the importance of plotting current and voltage to understand their relationship and the diode's behavior in the circuit. The consensus leans towards option (D) as the correct answer, highlighting the diode's role in conducting and blocking current.