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The advantages of using nanoparticles as a drug delivery system include:
A. the size and surface characteristics of nanoparticles can be easily manipulated. This could be used for both passive and active drug testing.
B. nanoparticles can be made to control and sustain release of the drug during the transportation as well as the location of the release. Since distribution and subsequent clearance of the drug from the body can be altered, an increase in drug therapeutic efficacy and reduction in side effects can be achieved.
C choosing an appropriate matrix also helps in increasing the efficacy and reducing side effects
D. all of the above

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Answer
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Hint: To answer this question, you should be familiar with the mechanism of the drug delivery system in the body and the conditions it requires. Nanoparticles offer multiple benefits in drug delivery systems by site-specific and target oriented delivery of chemicals.

Complete step by step answer:
Nanoparticles are a type of drug delivery system that comprise particles with a size range varying from 10 to 1000 nm in diameter.
Nanoparticles deliver drugs through two ways which are passive and self-delivery. In the passive delivery, drugs are incorporated in the inner cavity of the structure using a hydrophobic effect. When the nanoparticles are targeted to a particular site, the intended amount of the drug is released as the content of drugs which is enclosed inside the hydrophobic environment is very low.
While in a self-delivery system, the drugs intended for release are directly conjugated to the carrier nanostructure material for eased delivery. In this method, the timing of release is extremely crucial and it can be controlled by the use of nanoparticles.
The main benefits of nanoparticles are due to their surface properties. Various proteins can be attached to the surface, which changes the size and surface properties easily.
However, nanoparticles can cause problems such as toxicity. But when used in combination with appropriate natural products, the side effects can be significantly reduced.
Thus, we can conclude that all of the given statements are correct.

The correct option is D.

Note:
Nanoparticles stay in the circulatory system for a prolonged period and enable the release of drugs as per the specified dose. Thus, they cause fewer plasma fluctuations with lesser side-effects. Being nanosized, these particles penetrate into the tissue system, facilitating the easy uptake of the drug by cells, and ensure action at the targeted location. The uptake of nanoparticles by targeted cells is much higher than that of the conventionally used large particles with size between 1 and 10 µm. Hence, they directly interact with the diseased cells providing improved efficiency and reduced side effects.