These are stage directions (A). As you probably know, The Importance of being Earnest is a play. This scene is not one that would be read out to the audience, it is what the audience would see on stage, ie stage directions. Since you are reading the play's script and cannot see the action on stage, stage directions have been provided for you in your text.
Answer:
Because the government didn't want to fight the peasants and had to negotiate
Explanation:
An allusion is an expression designed to touch a subject without doing it explicitly, we could say its an 'indirect' way to say something (most likely controversial).
In this letter Martin Luther King uses this technique to reference civil rights activists and clergymen which gained him mass support since they could relate to his point of view. Throughout the letter he justifies his cause in the name of justice.
Hope this helps :)