Answer: C. Jack does not know if Lady Bracknell objects to the location of his house or the rule that says the location is unfashionable.
Explanation:
When Lady Bracknell asked Jack his house number in Belgrave Square, he told her 149. Lady Bracknell shook her head and said the side Jack was staying was unfashionable.
Jack was confused and asked her if she meant that the fashion, or the side could be changed. This shows that Jack is confused in this passage as he doesn't know if Lady Bracknell objects to the location of his house or the rule that says the location is unfashionable.