The moral of the story is to not be greedy, King Pluto got his wish but at what cost. The greed clouded his judgment and it lead to the death of his daughter.
B) was is used and there was nobody at that time affirms the situation
I guess the paragraph break should be after the B) Ellen asked and "How are you feeling?" and Ellen said. Because while reading this dialog, reader need a pause between the information which these characters exchange. In my opinion, there must be graphical and emotional space between their introduction and next action that hasn't revealed yet. Also, I'd choose B to make this conversation looks alive.