Answer:
Internal Rhyme is -a rhyme involving a word in the middle of a line and another at the end of the line or in the middle of the next. - GOOGLE
Therefore the words that are examples are dreams and dream.
For Instance "Doubting, dreaming dreams no mortals ever dared to dream before;
The correct answer is "adverb". This is because "within the old trunk" refers to the place where it was found, not a description of the trinket itself.
By putting it as a matter-of-fact statement (assuming everything else was action packed) there is a massive shift that creates contrast in the piece and leaves a very concise point to shock/leave the reader with.
Even though you didn't give us the fragment with the comma slice, it isn't really necessary here as we can answer just based on these 4 options here. All options apart from the second one are correct - only the second option doesn't fix the mistake of the comma splice, whereas the other options do but connecting the sentences properly.