The first one would be the right answer.
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Answer: B
Explanation:
"icy" when describing a person's attitude or personality means cold, rude, etc, but a smile is usually happy and warm.
Personally I don't think it's an oxymoron- it's definitely possible to do a rude, fake smile. But B is what an oxymoron is- two words that are opposite in meaning and shouldn't technically be used together- like "awfully good" or "bittersweet."