And pleas'd with our soft peace, stayed here his flying race. Where with most ease and warmth he might employ his art: Deceiv'd the quaking boy, who thought from so pure light. But she most fair, most cold, made him thence take his flight
The Dewey decimal system groups books by subject
I believe that your answer is the first option due to how late the crying is, and unlike in "The Tell-Tale Heart" where the heart is constant and represents the slow descent of madness, the cry of the cat only appears at the end.
The portion of the story where it shows the speaker's madness is actually his looking for and finding similarities in the second cat and wishing to kill it.
Hope this was helpful.
