When taking in consideration the context where the word fancy is used, one understands that it’s intention is to express a longing for something and therefore the correct answer would be option C "Desire", the word fancy as a verb can be used to denote when someone wants something, for example: I fancy a cup of tea.
I would say he would use words that make his tone sound sarcastic in the readers mind. Or after the character's line it would say...EXAMPLE: "Oh really" Alice said sarcastically
