The answer is B, Internal Conflict. I know this because I had the same question in school for me and I choose External Conflict but I was incorrect. The real answer is Intern Conflict.
The excerpt belongs to Great Expectations, a novel by English writer Charles Dickens that narrates the story of Philip Pirrip and how he has to adapt to different circumstances.
An internal conflict is also known as a <em>psychological conflict</em><em> </em>because the character faces different or encountered emotions (usually contrasting) inside him. This helps the writer develop tension even though there is no action. As seen in the excerpt, there's a lack of action, but the tension grows as the narrator describes the encountered emotions felt by the character.