I do believe it is more of a "p" sound in the final two lines. Hope this helps!
well, surveillance means observation, and privacy means, well, being able to be free without people watching you / observing you so maybe observing your privacy? i've never heard of that-
Past perfect because of the combination of the auxiliary "had" and the past tense of the verb "fall", "fallen".
I would say C because it is a prediction of what is going to happen and the fakir is telling them