The sentence C shows correct capitalization for the proper name Natalie andthe adjective all-Amecican. The definition of the adjective all-American, in this case, is an amateur sports person from the US who is considered to be one of the best amateurs in their sport. It also means having the values that are typical of the US, or made up of the best American things or people.
Nye uses short, forceful words to support her opinion that an American heritage is limited and mechanical. Nye describes a neighborhood fair to support her opinion that the idea of an American heritage does not exist.