Seems to me that the second option looks as if it were correct. While paraphrasing and summarizing, you are trying to shorten up an original piece of writing. Giving a well developed descriptions of main ideas isn't something to look for in paraphrasing, so that's why the first option is incorrect. In addition, restating basically everything from a text is not called paraphrasing nor summarizing, and that is why I'd rather classify it as copying.
The correct answer is C. Modern Poet.
The answer is:
a) What do pupils learn to create?
b) What do teachers train pupils to do?
c) Where do pupils learn photography?
d) What do pupils display in the classroom?
e) What attracts the eye?
The task consists in writing a question for each answer. As a consequence, each reply answers a question now which asks for information about the School Photography Club. For example, what students learn to do and where they exhibit their work.
Answer: The exposition of the story is presented in the lines; "There was once a Parsee living on an uninhabited island in the Red Sea, with a shiny hat, a knife, and a cooking-stove."
Explanation: A narrative exposition is the introduction of a character's background, the environment, or past events that preceded the story. In this tale, the exposition of the story is at the beginning. You learn that a Parsee was living in an uninhabited island and that he had a knife and a cooking stove. This is important later on in the story, since that man bakes cakes, and puts crumbs from previous ones on the Rhino's skin, to then make him rub everywhere and have wrinkles on it.