Answer:
"Now there came a little 'flutey' bit--very pretty!--a little chain of bright drops. She was sure it would be repeated. It was; she lifted her head and smiled."
It allows the reader to see the action from the perspective of Miss Brill and to see her objectively.
It provides an opportunity for the main character to indulge in imagination.
Miss Brill views social interaction as a stage play.
Their love is based on both physical and emotional attraction.
The use of imagery shows their love is predominantly physical. You can rule out D because although that may be true, it does not state anything relating to that in the small excerpt provided.
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there is moss growing on the wall