As nick walks home, Gatsby startled him by approaching him from his lawn, Gatsby invites him to Coney Island, then for a swim in his pool, Nick realizes that Gatsby is nervous because he wants Nick to agree to his plan for INVITING DAISY OVER FOR TEA
It's when the Giant Peach falls and it goes into the sea. This is where the story begins.
He means her soul in resting in Heaven
I would say D. But that's just my opinion