The image on the tapestry Nicholas discovers in the lumber room becomes a symbol for the story's conflict between wildness and propriety, suggesting that Nicholas's wildness will triumph over the aunt's attempts to subdue him.
The third one, it’s the most detailed one and actually gives an explanation on the topic
The correct answer would be option C: "feels slightly foolish about the events that occur", this due to the way the excerpt is written, since, it seems the author wanted to let the readers know that the narrator isn't stupid, so that they keep that in mind, when they read about a foolish thing said narrator did. If the narrator did something dumb, then option A and B would be discarded, as would option D.