The statement which best explains what the word choice in this excerpt reveals about Crusoe is the following: "the phrase 'it was a merry reflection' reveals that Crusoe is happy and content" (D).
The general tone of the excerpt is positive, almost cheerful. This is indicated by the author's use of phrases like "how like a king I looked" or "it was remarkable." The fact that Crusoe finds something as neutral as his reflection "merry" also shows that he is optimistic about his current situation.
A would be contemporary
B would be phantasmagoric
C would be translucent
D would be consecrate
E would be lucid
F would be solace