It would be A, because Everybody's Welcome is a title, and it acts like a name so it needs capital letters.
It wouldn't be B, because hometown isn't a name but a object/subject.
C, for the same reason as A : Everybody's Welcome is more of a name.
The neighbor has to be the antagonist, because the protagonist loved his dog very much and his neighbor killed his dog, the protagonist even called his neighbor evil, so I would go with C, the neighbor.
The perspective is 3rd person, as they use names instead of words such as “me, I, mine, etc.
