The correct answer would be option C: "feels slightly foolish about the events that occur", this due to the way the excerpt is written, since, it seems the author wanted to let the readers know that the narrator isn't stupid, so that they keep that in mind, when they read about a foolish thing said narrator did. If the narrator did something dumb, then option A and B would be discarded, as would option D.
It is most likely B. An intransitive verb doesn't have an object, the action verb(cheered) is in front as well.
Well, your cover page is very creative, while the original is kind of bland. Yours also shows all of the different traits that the characters have in the story, while the original does not. It could use a bit more color, but otherwise it's pretty good.