I'm sure its the first one. I haven't really read the poem in a while but i can easily tell by how it's spoken.
1- he found out his grandma was in the hospital so he visited her.
2- his grandma was in the hospital
3- his grandma encouraged him
4- first, because he tried his best.
I will have to go with A.He is trying to save enough money for his father's birthday present.