The answer is between B and D.
The 300 villages in the Lottery are blindly obedient to a tradition that is years and years old. Some things have been dropped and others added and nobody quite knows why.
The beginning of June 28 is just as serene. There are all sorts of interpretations, but nothing hides Jackson's anger about blind tradition that would even sacrifice young children and accept it as being a "good sport."
Tilly is the only one who is justifiably upset. The stones are going to be about her and they will kill her. Being stoned in the Bible was a slow painful process. You weren't killed by being hit. You died by suffocation because the weight of the stones eventually was greater than what the lungs could push up and let down so you could continue breathing.
This stoning is less biological and more what you think stoning should accomplish -- death by loss of blood. It is a horrible death. Everyone seems to take it for granted -- everyone but Tilly who had to endure it.
If you were writing an essay, you could easily defend A, B and D. My choice is D, but I wouldn't discount B at all.
The setting in this poem includes both time and place. The author first gives us a sense of both mood and time with the first line:
"Once upon a midnight dreary,"
We as readers are then told that the author/narrator is in his study, as evidence is given of the books, the bust of Pallas, and the other ecoutrements that lend themselves to studious labors. We are certain that this is, at the very least, a room, as Poe refers to his "chamber door" multiple times throughout the poem. In closing, we can conclude that this poem is set in the 1800s, on a dark and stormy night, in the author's place of academic study and leisure.
The answer is true!
I hope this helps