Fairy tale would fall under Fantasy with things such as Fairies and Leprechauns, but folktale would have characters such as Paul Bunyan that dont have the extreme fantasy aspect.
the answer is C you can argue both about that
The fallacy being use here is when they say "we should all wear our school sweatshirts on to create sense of unity because they will help them feel like a of the school" the should already feel of the school because they are going to that school that's how I know this is a fallacy