Mainly using i and me in a sentence identifies that the story is in third person.
EDIT: sorry wasn't thinking straight, so third person is you or the narrator seeing/feeling/visualizing the character that is in play. just imagine as if you are stalking that person like a ghost! and you see everything they do and feel, emotionally of course. its just like watching a movie you're the third person.
He - noun
built - verb
ryan - indirect object
a - adjective
tree house - direct object
in the backyard - prepositional phrase
The answer choice is c. the literal meaning