The correct answer would be option C: "feels slightly foolish about the events that occur", this due to the way the excerpt is written, since, it seems the author wanted to let the readers know that the narrator isn't stupid, so that they keep that in mind, when they read about a foolish thing said narrator did. If the narrator did something dumb, then option A and B would be discarded, as would option D.
C. Narrative has a plot, character and setting.
Think of a movie with Morgan Freeman, in the beginning when he Narrates he is describing the setting, plot, and sometimes characters.
These. it is demonstrating what the speaker is taking about
