The phrase that indicated a lost in thought feel is the "Midnight shakes the memory". It means that his train of thought is going double time in the dark or at night.
The answer to your question is that they’re all true
Its usually written as the first sentence of the paragraph (although its not necessary but preferred) It basically includes the main idea or the topic of the paragraph (doesn't have to be word for word), and states the main points of the paragraph briefly.
A: She, it
b: Her
c: They, it
Hope I could help ;)