The "A) My dog lunges and barks at squirrels" sentence is the correct sentence. This sentence is an example of a present tense positive sentence which describes a usual habit or fact in the sentence. The formula of the present tense positive sentence is "subject + verb/verb-s/es + adverb". The sentence includes verb-s/es if it has a singular third person subject as the sentence's subject.
I think it’s ‘in conclusion’ because you say that when you’re finished with saying what you needed to say, so therefore I don’t think that’s be a good phrase to use when you’re trying to live from one thing to another