Is this a trick question? If not, then it is not well-defined.
Here are some of the possible interpretations
1) The way the problem is written, you could simply say d (think about it)
2) Do you take the length of the car into consideration? Presumably not.
3) The separation distance is not defined as d>0. If it is 0 then the question turns into an insurance claim rather than physics problem.
4) car2 can have already passed the intersection when car1 reaches it. There would be, however, a solution. Use v2 and calculate (=write down the formula) how long it took from the intersection point I to the point D where I and D are d apart. Once you have that time you only have to find the distance of car1 from I at that time (which is the speed of car1 times 'The time that it took car2 to travel the distance d'). If this question is for real, you can impress somebody with that answer.
5) The most likely case is that the question does not take the length of the cars into account and assumes that car1 is at the intersection before car2 and the distance then, at that moment, is d. The question probably further asks what the ´continuous´ minimum distance is between the two cars when they are moving. I also assume that they use the word "minimum" in order to express that there is a straight line between the cars rather than a hill or something.
So, in that case make a drawing of the situation and think of Pythagoras (by the way, the guy lived in a quite remote, but beautifully set village on the island of Samos, Greece -worth visiting). You will realize that car1 is always (v1*t) and car2 (v2*t + d) away from the point of intersection. There is one non-intuitive part: you have to think of t as negative time -t (the cars approached from the past) and hence use the modulus of t = |t|.
The rest I leave to you since I think that this may be a homework question or something.
Cheers,
Roberth