Question

That loaf of bread looks homemade and it ____ homemade but she bought it from the supermarket.

Answer 1

C. Tastes. 
Obviously, bread can't sound homemade and smell is not plural, so rule it out as well. That leaves 'seems like' and 'tastes'. The best way to determine if the bread is homemade would be to taste it. Additionally, the statement already says it 'looks' homemade and 'seems like' is quite similar to that.

Answer 2

That loaf of bread looks homemade and it tastes homeade but she bought it from the supermarket. C-Tastes