The answer would be B, here's why,
Jim’s narrative of his heroic acts is valuable because he records them modestly, giving us an insider view of heroism that is not very glamorous. Jim is not arrogant, but instead is humbled by his mistakes and successes. He takes full responsibility for his errors rather than finding excuses for them, and he confesses to moments of panic, indecision, and regret rather than bragging exclusively of his successes.
It should be "Their car is blue."
There is a location. Their represents possession.
Do you have an example of the "text"? It's difficult to answer a question like this without seeing the text itself.
Main pieces of imagery can be something describing how stuff looks, smells, feels, or what it sounds like. It should create a picture in your head. So whatever helps illustrate the text for you is an example of imagery! Hope this helps!