It is a story parallel to what is happening in the Usher house.
The palace in the description represents Roderick Usher, whose hair used to be blond, as the yellow banners that wave in the air; through his eyes (the windows of the palace), a harmonious mind could be perceived, and wise words used to flow from his mouth, described as a door of pearl and ruby. However, gloom befalls on Roderick; his hair turns gray, his eyes are reddened by tears, his thoughts are discordant, and his mouth utters only the wild laughter of a madman.
A direct quote should NEVER be long-winded and lengthy. You want to try to get the point across in a carefully selected short excerpt, not copy a large portion of someone else's work and insert it into your paper with a little bit of your own writing.
I think that the answer is c