The correct answer is C. down the street.
As the name itself says, a prepositional phrase begins with a preposition. The only preposition in the sentence above is the word <em /><em>down, </em>which means that the following words are going to make a prepositional phrase with it. This prepositional phrase is telling us the location of the friend, where he or she lives.
A: It shows his death, which would be the end of his life/biography
He tricks Fortunato into thinking he has Amontillado