16. It refers to the wallpaper (c). You can infer this because the first few paragraphs she is describing something acrid and yellow, and follows it up with “He laughs at me so about this wallpaper” (paragraph 6).
17. The capitalization of REASON is the narrator implying that her husband thinks that she is irrational (A). The narrator is trying to convey that her husband believes that her life is great and that she has no reason to be upset and the fact that she is upset is irrational.
18. Her relationship with her husband is strained (B). Clearly the narrator and her husband have been arguing about the wallpaper and the reason why she is upset.
19. We can infer that the narrator is suffering from mental illness (C). She is having delusions that the wallpaper is causing her to suffer greatly. When someone is worrying, paranoid, or upset about nothing you can infer that they have a mental illness of some sort.
20. “Such fancies” refers to being so nervous about her situation. The husband doesn’t want to redecorate the room because he doesn’t want to encourage her delusions further; he believes that she should just get over it and stop being so outlandish over nothing.
