I guess the paragraph break should be after the B) Ellen asked and "How are you feeling?" and Ellen said. Because while reading this dialog, reader need a pause between the information which these characters exchange. In my opinion, there must be graphical and emotional space between their introduction and next action that hasn't revealed yet. Also, I'd choose B to make this conversation looks alive.
A do you want to your room or would you prefer the wallpaper
Explanation:
Anne describes herself early in the diary as somewhat superficial. She says that she has few true friends because she cannot bring herself to talk about serious things with any of them. This, in fact, is why she says she's keeping the diary. She acknowledges that she sometimes talks too much, recording early in the diary that she had to do a writing assignment on being a "chatterbox."
