The subcategory that fits the best the following words (applaud, cheer, observe, consume) is the following:
A.) Things you do at a celebration.
All the verbs on that group consistently exist on a celebration: applauds, the act of cheering, observing the events at a celebration and consuming different types of things depending on the celebration (cakes for a birthday or wedding, drinks for a party celebration, etc.)
It should be "Their car is blue."
There is a location. Their represents possession.
Billy was considered a hero by the many people who had seen his courageous crime-fighting in action.
Okay, so this is a little hard to answer when you do not have the excerpts, but I will try my best to work a answer out of the headings. I think your answer would be C. It makes sense, the info that comes after the titles, so If I were you I would go with C.
I hope that helps.
The correct answer is a Dictionary.