Lost generation is most likely referring to the young men that served in the military and lost their lives during the war, which left a huge age gap in many populations. The remaining population mostly consisted of women and men that were too old to serve or too young. All fit men between the ages of 18-45 ish were gone.
What is the figurative language of "clouds of inferiority begins to form in her little mental mind " is a metaphor.
Shakespeare's intention was not to make Shylock a tragic figure; instead, Shylock was meant to function as a man who could be vividly realized as the epitome of selfishness; he must be defeated in this romantic comedy. In a sense, it is Shakespeare's own brilliance which led him to create Shylock as almost too human. Shylock is powerfully drawn, perhaps too powerfully for this comedy, but his superb dignity is admirable, despite the fact that we must finally condemn him.
The answer I think will be B