A fallacy refers to an argument that employs faulty reasoning. This is often the consequence of invalid premises as the basis of an argument. Fallacies can sometimes be difficult to spot because they often appear to be better than they are. Fallacies can either be constructed on purpose (with the purpose of deceiving someone) or happen due to carelessness or ignorance.
I would go with C. Because the narrator is talking. The narrator want to have a lesson badly on water-reading. But Mr. Bixby thinks the narrator is far to advanced for it and will not teach her it. So Mr. Bixby is being stubborn and will not give the lesson.