The narrator is the voice that tells and recounts events, stories or anecdotes. In the case of the narrator in the first person (internal narrator or protagonist), the narrator is a character within the story (intradiegetic): acts, judges and has opinions about the facts and the characters that appear. In this case the narrator only has and provides information based on his own vision of the events. But we also have other narrators like the one who is in second or third person, the omnipresent, among others.
A reader can determine the credibility of a narrator by examining the balance and consistency of information provided by the narrator. The correct answer is C.