I believe it would be B, because there are two subjects that the speaker is referring to at the beginning of the sentence; the caterpillar and the leaf. When they use the word "it" in the second half of the sentence it is unclear whether they mean to say if "it" is the leaf or the caterpillar which they are carrying to their brother.
C:) Discusses the importance or implications of the main points in the essay.
The answer would be A. The Neighbors.
Answer:
I don't know, since I haven't read the story,, but I would like to guess it's because he is afraid that they would target nim next.