That the character is talking :)
I know of many scary stories. But one good one, that has many ghost stories in it, is called Greek and Roman ghost stories. Or if you want some adult novels that are "scary" then read some Stephen King. His books are good.
Sorry I couldn't write a scary story and instead, gave you a book title and a author.
-Anime
The correct answer is C. Moral dilemma
All other mentioned possible answer refer to other aspects of narratives such as narration or type of a narrative.