Answer: C. The tribe's people were punishing Ja-bae-ka for falling asleep during the story.
Explanation:
I do not know the full story so based on, "He threw up his head, looked all around," indicates that his head was down as if he was asleep.
"Took fright and rushed to the door with a cry of terror." indicates he was afraid.
"We ran out of our hiding places with shouts of laughter". indicates they were playing a trick.
Hence, your answer is C. The tribe's people were punishing Ja-bae-ka for falling asleep during the story.