The underlined adjective clause "that was written" is modifying the noun poem. In this sentence, the adjective is describing or adding further information about the poem. Option C is correct.
An adjective clause is a form of dependent clause which purpose is to describe a noun in a sentence. It works as an adjective even though it is made up of a group of words instead of just one word. In the case of an adjective clause, all the words are intended to modify or describe the noun or pronoun.
The correct answer to this question is A, Yesterday Sydney mailed the short story from the post office located near the school. You're Welcome. (I took the quiz and It was correct.)