It helps develop the theme because with the teacher being strict Kevin no longer tries to get answers from his father and listens to the teacher and Kevin learns from it.
Seems to me that the second option looks as if it were correct. While paraphrasing and summarizing, you are trying to shorten up an original piece of writing. Giving a well developed descriptions of main ideas isn't something to look for in paraphrasing, so that's why the first option is incorrect. In addition, restating basically everything from a text is not called paraphrasing nor summarizing, and that is why I'd rather classify it as copying.
What Wiesel means is that it would be a crime to forget. By forgetting the actions of the Nazis, we are contributing to the pain caused. If we forget we are letting the Nazis get away with what they did without facing any consequences