I think it's the first one. Throughout the story we see Becky struggling with the idea that she might fail this time. Really she is making the possible outcome seem worse than it actually is (the outcome being that she could fail the test again), and Justin helps her calm down and realize that it really isn't that big of a deal if she doesn't pass.
<span>It is either past perfect tense or pat progressive.
Example:
past perfect--- I had cooked when they brought the food.
past progressive---I was cooking when they brought the food.
Had cooked is past perfect, and was cooking is past progressive. Had cooked indicates cooking was finished, and wascooking indicates it was going on or in progress when something else happened (in the simple past).</span>
