To select a DBMS based on the criteria of physical capabilities, CIW recommends considering the following factors:

A. hardware requirements: This factor refers to the specific hardware specifications and resources that the DBMS requires to run efficiently. It includes considerations such as processing power, memory, storage capacity, and network requirements. Considering hardware requirements is important to ensure that the chosen DBMS can be effectively deployed on the available infrastructure.

B. data compression support: This factor relates to the ability of the DBMS to compress data, which can help in reducing storage space and improving overall performance. Data compression can be especially beneficial when dealing with large datasets or limited storage resources. Considering data compression support is crucial for optimizing storage efficiency and minimizing costs.

C. encryption support: This factor pertains to the DBMS's capability to encrypt data, ensuring its confidentiality and integrity. Encryption is essential for protecting sensitive information from unauthorized access or tampering. Considering encryption support is vital for ensuring data security and compliance with privacy regulations.

D. All of the above: This option is the correct answer as CIW recommends considering all of the factors mentioned above when selecting a DBMS based on physical capabilities. Considering all these factors ensures that the chosen DBMS aligns with the organization's hardware capabilities, storage efficiency requirements, and data security needs.

Therefore, the correct answer is: D. All of the above.