The correct answer is D) Muslims considered the Kaaba a sacred place.
The feature of Islam that incorporated religious practices from previous Arab practices is that Muslims considered the Kaaba a sacred place.
Kaaba is the shrine located near the Mecca, in the Great Mosque. For Muslims is the most sacred place on Earth. When they pray the orient themselves to this place to make their prayers. That sacred it is. So it is correct to say that the feature of Islam that incorporated religious practices from previous Arab practices is that Muslims considered the Kaaba a sacred place.
