B is the best answer. It gives the reader the context of the quote by stating the speaker and what is happening. It also has the quote which is more credible than just a word or two pulled out. Since it's just introducing this information, it also allows the writer of the essay to expand the idea with further explanation.
Answer:
Sherburn run his eye slow along the crowd; and wherever it struck the people tried a ... Then pretty soon Sherburn sort of laughed; not the pleasant kind, but the kind that makes ... The idea of you thinking you had pluck enough to lynch a MAN!
Explanation: