The plot of "The Signalman" reaches a climax when signalman dies. As you know, the main characteristic of climax is that it is the most emotional part of a story that provides a lot of interest and suspense to a reader. The death of signalman is the highest point of emotional intensity of the plot as the loved protagonist unexpectedly (or undesirably) passes away and put an end to the story.
The correct answer would be the third option, prosperous. This means it's successful and doing well :)
1. Fundamental
2. Disbanded
3. Discuss
4. Second
5. Problems
6. Established
7. Consensus
8. Intentions
I would say C is the correct answer
B because a family struggle is the type of the archetypal story