A.
"tired from the long day" is an addition to the full sentence "My cousin James fell asleep on the couch." Since it's in the middle of the sentence, it makes more sense to the reader when each part is separated to indicate the transition of thought.
(There is more technical reasons for this, but thinking about it in terms of transitioning thoughts always made more sense to me personally.)
I would go with C. it seems most reasonable
Answer:
My parents <u>painted</u> the house that summer.
The house <u>was painted</u> that summer.
The active voice describes a sentence where the subject performs the action stated by the verb.