According to the essay, "the monster" is created B. From a culture's concept of fear. This is because each culture has their own fears, desires, anxieties and fantasies. These fears are ever changing depending on culture and time period, but the monsters stay the same from generation to generation, and we can also create new ones.
You are right, the prepositional phrase in the sentence <em>Late last night there was a loud knock at the door </em>is D) at the door.
The only preposition in the sentence is <em>at, </em>therefore this has to be correct.
The answer is A how it was cast