Answer:
so what do I want to talk about to be with you and I don't want to be with you and I don't want to
The correct answer as to how Margaret Atwood transforms source material in the Penelopiad is the second choice:
Penelope explains that she recognizes Odysseus immediately
Once Odysseus has returned from his long voyage, his wife Penelope recognizes her husband immediately, although in Homer's version she does not. Atwood's The Penelopiad is a retelling of a classic ancient Greek epic poem Odyssey.
The eerie atmosphere given by the unknown sets an unsettling mood, there is some supernatural element due to us not knowing what the entity that is taken over is also the characters have an unfortunate ending due to them being chased out of their own home. (I hope this helps I’m also taking this story :))