D, since the children were seen by their mother. It would be active if their mother saw them.
The workers at the mill ARE planning to strike.
The sentence that best paraphrases the first sentence of the excerpt is "You aren't telling me anything I don't know". This is because the narrator uses the metaphor of "rousing me from a deep sleep" as saying that he was aware of the situation that was going on, it wasn't that he didn't know about it.