Answer:
Fiona is very angry for her boss decision to sack several employees.
Yes, it seems to be an alternative, in some situations acceptable, but eccentric and not neutral spelling of this word. It accents the fact that "ea" here are two separate vowels rather than a diphthong: that is the function of the trema (the two dots).
In practice it's not used much, because it's not really necessary: it does not distinguish it from any other word, and trema is not easy to find on English keyboards: so there is no need.
The answer is B. They are easy to understand.
The utilization of Allegory has started a long time ago as it was simple for the readers and audiences to understand. It uses metaphor to enhance the meaning of the piece. It would be very hard to miss a point of this kind of writing since characters are most of the time pointedly named by the qualities the portray or represent.