Because all though he knows his sister is dead, he can still hear knocking and scratching sounds coming from her coffin. She's dead, but comes back to life to haunt him causing his madness to grow stronger.
In sentence 3. It should be
Discouraged by this, Loraine walked four blocks to a coffee shop.
<span>The passage has a melancholy mood throughout.
Demonstrated by the negative tone and word choice in the passage.</span>
The apostrophe is used for possession (e.g. my cat’s food or my mom’s hairbrush)
Hope this helps :)
~ His Cookie Monster