The answers are 1, 3, and 4.
People laughing as they walk next to the calm water. Laughing, as if they have never been with friends. Every bar open on every block as you can hear joyous conversations. Also the quiet, dark houses that you walk past flicker on a light almost as to say goodnight.
This scene occurs when Balfour is on the small islet. Balfour gives into despair when he tires to cross the river but cannot -- it is too deep. He finds that his "yard" (a piece of wood he was saving to float on) has been carried away. Believing he has no way to escape the islet, he gives into despair and weeps.