Nothing is underlined in your sentence, but the sentence sounds like it is set in the present.
B. present
The best example of a story's historical context is A. the economic situation the author lives in.
<u>The historical context of a story refers to the background and surrounding situations that affect that story</u>. In that way, it is related to the social, cultural, economic and political circumstances that surround that text and that are linked to specific historical moments. <u>As the economic environment is included as part of the historical context of a story, the economic situation in which the author lives in is the correct answer. </u>
I THINK ITS C. NOT SURE. hope this helped!