Answer:
B. The conflict is resolved.
Step-by-step explanation:
The statement that best describes this stage of Freytag´s pyramid is "the conflict is resolved".
The place where the red arrow points in the Freytag's Pyramid is known as the Falling Action. The Falling Action is the point of the story when the conflict is being resolved and it then moves to the closure or resolution of the story. The Falling Action comes immediately after the Climax of the story has been reached.
Falling Action wraps up the narrative and resolves every lose end in the story.
Therefore, the above option is the correct answer.