You just hit the biggest lottery of all time! An understatement would be: "I'm kind of excited."
Matchlocks were primed, cartridges rammed home, and swords loosened in their sheaths. Was it the Tuaregs again across our path? But Mohammed, the keen-eyed, shouted joyfully— “The oasis, the oasis! I see the palm-trees.”
this would be the answer because of the way that they are over joyed when they find the Oasis.
The dash should be placed after "things".
Nowhere else in the sentence makes sense, and there is an abrupt change with no pause.
Hope this helps! :)
I think the answer choice is C