There is no address for Mary on the register of birth and I don't even think she was literate as her signature is just marked with an 'X'.
So the implication is that the birth took place in her usual residence.
It says he was born in Taivarran (spelling?), Kiltarlity. The arran part is definately right but the first 4 letters could be different.
Could you post the extract with the address here and see if someone can decipher or recognises it?
The witness on the register was just the registrar himself.
What the registrar was witnessing was Mary signing with an X. There isn't normally a witness on a birth certificate unless the person registering the birth is illiterate.
The age of the Mary's on the 1871 census for Kiltarlity don't fit as they've only got a 6 year old and a 50 year old and if you include Donald only the 6 year old Mary shows up.
Hmmm.
In the 1881 census there is an 8-year-old Donald McLeod, boarder, born Kiltarlity, in the household of Donald Macdonald, 74, and his wife Barbara Macdonald, 73, both described as paupers, at Ardindrean, Kiltarlity.
If a child was abandoned or orphaned, or there was no family member who could look after it, the child would become the responsibility of the Parochial Board, who would normally pay for the child to board with a suitable family. I speculate that this is what happened to Donald.
So if I were you I would want to find out whether the Kiltarlity Parochial Board records have survived, and if so what they say about Donald McLeod and his parentage. If the records have survived they are probably in the care of the Highland Archives
https://www.highlifehighland.com/highland-archive-centre/