I think that the most in depth answer is D, it makes the most sense!
I believe that sentence 2 is the correct answer.
The ball, that was yellow and made of rubber, bounced down the road.
Our clause is : "that was yellow and made of rubber." This describes the features of the ball, which is the noun. Adjectives describes nouns therefore this sentence would be the correct answer!
Answer:
Plots are the events of the story.