The correct answer is the first option: The words each character says are enclosed by quotation marks.
Anything that a character says is always in quotation marks. This makes it much easier for readers to follow the characters' speech and understand the story.
For example: As Sarah closed her notebook, she accidentally gave herself a paper cut. "Ouch!" She exclaimed.
The word "Ouch" is enclosed in quotation marks which visually shows that the character spoke.
One of the only instances that a character's speech appears next to his/her name is in a play. Plays are often written with few actions and lots of speech. This is a format in which the character's words will appear next to his/her name.
Words that the main character says are also always in quotation marks, not italics or brackets. However, often times, words that a character thinks/says to himself may appear in italics.
Words that address a conflict are also never in bold or heavy black type. Conflict is written in the same format as the rest of the dialogue.
14 incorrect
15 correct
16 incorrect
16 correct
In my perspective, the answer is definitely letter B. Sasha feels *pity* for her friend. The word "pity" is quite ambiguous depending to how it is expressed or delivered to the recipient. More importantly, it focuses on the intent of the speaker (either you're mocking them or share their feelings).
