Question 1 use POE:
A: The passage never mentions anything James originating the so-called psychological novel - No.
B. Conventional narrative being chronological in nature is never mentioned in the passage. - No.
C. The passage does describe how novels lacking overtly dramatic incident engage the reader. Evidence of this can be seen in the last line of the second paragraph -
Quote:
A James novel, however, possesses its characteristic interest in carrying the reader through a rich analysis of the mental adjustments of characters to the realities of their personal situations as they are slowly revealed to them through exploration and chance discovery.
D. and E. Are out of scope as we are never told how the audience received James's work nor that he was the only author to explore psychological nuances.
Question 2: Figurative language = metaphor. The only sentence that uses a metaphor is C with the use of a curtain.
Question 3: "moral and psychological antecedents, realizations, and consequences". Think of your own word first. These concepts can be associated with the character's doings. The only word that matches associated is 'accompanying'. Therefore D. Note: you can also use POE to get the answer to this question.