Sorry I am not positive, but I think D makes the most sense.
As stairs are made out of steps, jewelry is made out of beads. (Sorry if that doesnt make sense)
sentence 3, there should be a comma after hugging.
This is a little bit tricky to justify without context, but I would say that this is an example of characterization. Through this sentence, the reader isn’t directly being told something about the character or her personality, but her sleeping with the letter under her cheek can help the reader make inferences about how, for instance, she treats things that are important to her.