A framed story such as 1001 Nights has one narrative.
Sorry but could you please tell me which one is the boxed word? I will help you once you tell me the word in the comment section.
If you accept either C or D as the correct revision then you have to accept both of them. Hence the best way to treat the sentence is to ignore both of them.
B is not correct either. You can over punctuate.
That leaves A.
Sometimes the right answer to many things is to do nothing. My dad used to say "Don't fix what isn't broke."
A is the answer <<<<<