Question

Which sentence contains a properly punctuated and capitalized direct quotation? A. Henry exclaimed, Ow! A bright light is shining in my eyes! B. "After a long journey upstream," The narrator said, "The salmon lay their eggs." C. "Look at that red bird eating seeds at the feeder," called Grandma. D. "I will meet you", said Ted, "in the auditorium".

Answer 1

Well, A is wrong. There are no quotations!
B is also wrong, when continuing a sentence, the first word of the next sentence does not need to be capitalized. 
D is wrong because the comma needs to be inside the quotations, not outside. so your answer is C :)

Answer 2

The sentence which is properly punctuated and capitalized is

C. "Look at that red bird eating seeds at the feeder," called Grandma.

A. is wrong because there is no quotation marks, it should be written

Henry exclaimed, "Ow! A biright light is shining in my eyes!"

B.  is wrong because you don't need a capital letters at every break, only if it's a new sentence. It should be written.

"After a long journey upstream," the narrator said, "the salmon lay their eggs." 

D.  is wrong because the comma and period belong inside the quotation marks. It should be written

"I will meet you," said Ted, "in the auditorium."

Hope this helps.