It is quite complicated to choose one of the generalization because they tend not to state the general idea of the excerpt. However, I would say that the best option is D "<span>It is close to Nickleby High School". So students seem to be used to go there, they go on a Saturday and they could come across other classmates.
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Im pretty sure the answer is <span>the old library building is falling apart because it is in such disrepair</span>
Anything that sounds like a name, city, month, etc. gets capitalized... So for example the first sentence would be...
Early in April, Paula and Harry Jones left on their trip.
Hope this helps!