No. because the quotations are BEFORE the period. Some titles have periods, so that's fine, but it's not supposed to be "titanic." it's supposed to be "Titanic".
I believe it would be B, because there are two subjects that the speaker is referring to at the beginning of the sentence; the caterpillar and the leaf. When they use the word "it" in the second half of the sentence it is unclear whether they mean to say if "it" is the leaf or the caterpillar which they are carrying to their brother.
I would like to answer this question but need more context first
