The answer to this question is already partially in the question: Picasso wanted to show show the horrors of the war, as experienced by the civil population, to the world. He wanted to show that war has devastating effects and by this turn people's opinions against the war.
The bombing was also done by the fascists so the painting can be seen as a symbol for the fights against the fascists.
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Fauvists, such as Maurice Utrillo, were known for their (B) use of unusual and unnatural colors.
The answer is A. The painting is “The Night Watch”, I suppose. It is because of the lighting that the painting is more dramatic, since it highlights people and creates suspense.