The term<em> rhetorical situation</em> refers to any situation that involves at least one person using some sort of communication (oral or written) to modify the perspective of another person (the audience). The audience can be intended or unintended recipients of the message.
The correct option is the first one. The second one is incorrect because the listener/reader doesn't need to intend to receive the message. The third is incorrect because the audience does not necessarily consist of students in a particular class (although it can), and the fourth because the audience doesn't need to be gathered in the auditorium.
D. "next they'll... have intermarriage between black and white"
Explanation:
Tom is a wildly racial and prejudiced man. He is initially found reading an antisemitic tract and agreeing with Nazis, and this quote continues his bias. He sees the "fall of civilization" as intermarriage between races.