Answer:
She is held in high esteem.
Explanation:
The phrase <em>to hold (someone) in high esteem</em> means <em>to admire or respect someone very much</em>. It's the same phrase as<em> to hold (someone) in high regard. </em>
Based on the given excerpt, we can conclude that Guenever, King Arthur's wife, is held in high esteem. She sits among Arthur's best knights, and they respect her. She feels comfortable around them (she is described as <em>in high spirits</em>). She is dressed in the finest silk and has ornaments made of jewels. It's obvious that she is treated well by everyone surrounding her.
The rest of the options are incorrect as there is nothing leading us to make such conclusions. This is why the fourth option is the correct one.
