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.
I'm not sure how many errors you are looking for but, this is what I got:
My Father and I, have already several states this month.
I really only see one error. Father should be capitalized because Father is a title of a person. I would also say the "I" should always be capitalized but, it looks like you already got that. Everything else seems ok.
The tale is told as if its happening once upon a dream
Sorry I can't answer 3, 5, and 6!
1. “It's so hot in this classroom.”
Answer: You're right. I'll open the window.
2. “I need your photo.”
Answer: My photo? What will you do with it?
4. “Can I borrow your laptop?”
Answer: No problem. How long will you need it?
7. “Look at the man on the motorbike!”
Answer: Oh, no! Is he going to crash into our car?
8. “There's someone at the door. Can you answer it for me?
Answer: At midnight? I don't think it's safe to answer.
9. “Natasha is having a welcome party on Friday night. Are you going?”
Answer: Of course I am. There's not anything I have to do on Friday.