the answer is C, "The Wizard of Oz" (quotation) because it is referring to it.
The purpose of a paragraph is to express a speaker's thoughts on a particular point in a clear way that is unique and specific to that paragraph.
I would go with,
The stories time period
The characters environment
And where the story takes place
Or if it is an autobiography, then you can also look at where the author is from! I hope this helps!